Sefalana expects higher profits

Mbongeni Mguni | Tuesday January 19, 2021 17:25

 

Sefalana expects higher profits

In a cautionary to investors last week, Sefalana directors said pretax profits for the six months to October 31, 2020 would be up to 23% higher than the P121.1 million recorded over the same period in 2019. 

Directors said the drivers of the improved performance would be shared when the results are revealed before the end of January.

Analysts expect the rosier numbers to reflect the reopening of the economy from last July, which helped most retailers’ foot traffic and sales. Sefalana Holdings’ revenues are traditionally anchored by Sefalana Cash and Carry, its retail trading unit, which contributed 57% of the P5.8 billion group revenue recorded in the full year to April 2020.

Within the Cash and Carry unit, however, Sefalana Liquor is expected to have taken a knock in the six months to October 31 due to frequent suspensions of alcohol trade by government.