The Q1 2026 Earnings Call

Africa Eats shared the highlights of Q1 2026 on a Zoom call with shareholders. A video recording of that call is below. The written report can be downloaded here, the slides from this presentation here, and all published reports are available on tuesday.africa/EATS:

tuesday.africa/EATS also has the latest share price, historic prices, financial reports, announcements, and other news.

SUMMARY OF THE EARNINGS CALL:

Africa Eats reported portfolio growth to $33.8 million enterprise value (up $500K in Q1) with trailing four-quarter revenues of $60 million across 24 portfolio companies . Share price reached $2.90, trading at only 3% discount to enterprise value of $2.97 . Net gain of 54 new shareholders since listing.

Mission & Impact Reminder

Impact Mission:

• Thesis: Philanthropy and government aid insufficient to solve African hunger/poverty at scale
• Model: For-profit capitalism (referencing China’s poverty elimination through capitalism)
• Smallholder farmers now own 2.5-2.7% of company through annual 1% grants (constitutional requirement)

Company Performance

Portfolio Valuation:

• Fair market value: $33 million (up from $32.3M at end of 2025)
• Annual revenue revised to $56 million for 2025 (up from $600K in 2014)
• Very low leverage: only $300K debt on $33M equity, winding down to zero in 15-18 months
• Share price up 29% since listing in October 2024, nearly 3x since December 2020

Valuation Methodology:

• Consolidated model using revenue multiples and EBITDA multiples blended by company scale and growth rate
• Two public companies valued at market cap
• One company in active priced round uses that valuation
• New investments (OBRI, Nyata) marked at cost

Portfolio Changes:

• No new investments in Q1
• Chicken Basket removed (winding down)
• OBRI resurrected and Nyata added in Q4 2025

Decisions Made

Cross-listing Strategy:

• Shelved Nairobi ETF project after Kenyan regulator issues
• Decision: Cross-list Africa Eats on Nairobi Securities Exchange instead of ETF structure
• Cannot simultaneously cross-list and raise capital; must cross-list first, then raise funds later
• If successful in Nairobi, will replicate in 6-8 African markets over next decade to access public equity institutional capital

Truck Listing:

• Postponing public listing due to insufficient investor interest
• Decision: Likely take debt financing (up to $5M) from existing term sheets to grow company, then return to market when twice as big
• Rejected acquisition offer at half of enterprise value

FLEDGE Africa Program:

• Ran accelerator in Nairobi with 8 companies selected from 360 applicants
• Decision: Fund selected companies as new bizi if business plans to double scale are approved by Africa Eats team
• Capital for investments to come partially from Nairobi cross-listing proceeds

Pending Confirmation

Shareholder Approval Required:

• Annual shareholder meeting scheduled June 17, 2026 at 9am Mauritian time via Teams
• Need 50%+ shareholder approval via proxy vote for Nairobi cross-listing
• Proxies to be sent by Registrar; meeting will include Q&A but will focus on shareholder resolutions

Nairobi Cross-listing Timeline:

• Documents near submission stage
• Expected completion: next quarter or following quarter (Q3 or Q4 2026)
• Will enable access to East African institutional investors (pension funds, insurance companies) who don’t invest in Mauritius

Operational Updates

Annual Gathering:

• Held in Nairobi at Nairobi Street Kitchen with ~100 attendees (venue capacity: 250-300)
• Unconference format: attendees suggest and vote on topics, no panelists or facilitators
• Mix of entrepreneurs from portfolio and external guests (accelerator operators, investors, public market participants)

Portfolio Operations:

• Companies report quarterly via Google form, send management reports, and provide annual audits
• Enhanced financial review processes after Chicken Basket embezzlement
• Seasonal business model: Q1 typically slowest due to non-harvest season across Africa

Risks & Challenges

Geopolitical:

• Swahili Honey shipping times increased to 12 weeks (from 3-4) due to Iran/Hormuz Strait issues; shipping costs elevated
• Oil price increases affecting transport costs, but inflation passed through to customers
• No current business disruption from Congo war or Ebola outbreak in Eastern Congo/Uganda border region

Weather/Climate:

• Tanzania experienced reduced rainfall in 2025, resulting in lower honey production
• Swahili Honey had first-ever year-over-year revenue decline due to reduced crop yields
• Current mitigation: diversification across multiple regions within countries; expanding Swahili Honey to multi-country sourcing in 2026

Financial Highlights

Income Statement (Q1 2026):

• $707K unrealized gain from portfolio revaluation (non-cash)
• Net accounting profit: $511K (not cash profit)

Shareholder Base:

• 54 net new shareholders since listing
• 11 total shareholders cashed out (6 from FLEDGE era)
• 65 new shareholders bought shares

Action Items

• Africa Eats shareholders: Complete proxy forms for June 17 AGM to approve Nairobi cross-listing
• Africa Eats team: Review business plans from 8 FLEDGE Africa companies for potential bizi additions (2026)

Resources

• Book: Berkshire Africa (second edition updated October 2025) details full Africa Eats model and capital markets experience
• TRUK: “Listing particulars” available at tuesday.africa/TRUK
• Q1 2026 report: available at tuesday.africa/EATS