Kenyan supermarket operator Quickmart is targeting annual revenue of $1bn and plans to add at least 50 stores over the next four years.
Following the launch of Quickmart’s initial public offering (IPO), group CEO Peter Kang’iri told Bloomberg that the company expects revenue of approximately Ks60bn ($462.4m) in the current financial year.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Quickmart currently operates 72 stores and plans to expand its network to 125, according to the report.
Kang’iri said the company will increase annual store openings to 15, compared with 10 to 12 in recent years.
Opening a new store costs between Ks100m and Ks150m, he said.
New outlets break even within their first month, while capital expenditure is recovered within 18 to 36 months.
Kang’iri said the $1bn figure is his own target and has not been formally presented to investors.
“I have a strong belief that the business should be a $1bn company,” he said.
He described the target as his “personal vision as a CEO – it’s not in the business plan or it’s not in any document with the investors yet.”
Kang’iri said Quickmart has no immediate plans to operate stores outside Kenya. However, the company has registered its trademark in Uganda, Tanzania, Rwanda, the Democratic Republic of Congo and Ethiopia.
Asked about the company’s geographic ambitions, he said: “The plan is within Kenya for now, 100%, but we still have the plan for the region. Our vision is always to be a pan-African business. We expect to be number one, not only in Kenya, but also in Africa one day.”
On funding, Kang’iri said Quickmart pays suppliers after 60 days but typically sells its stock within a month. This gives the company approximately 30 days of interest-free working capital to support operations and expansion.
He said borrowings on the balance sheet currently stand at approximately Ks6.8m.
Quickmart has Ks2bn of bank facilities that it has not drawn on. Kang’iri said the company could borrow up to Ks8bn in future.
