Sefalana Botswana Weathers Storm
Correspondent | Monday January 28, 2019 11:24
The division’s Sefalana Cash & Carry Limited contributed 55% and 23% to the Group’s revenue and profit before tax for the reporting period, the Group’s Finance Director Mohamed Osman announced on Friday.
The Sefalana Group’s revenue stood at P2.5 billion for the six months up to October 2018, up 13% on prior period and profit before tax rose by 25% on prior year to P103.6 million.
During their half-year results announcement at Cresta Lodge on Friday, there was further good news for shareholders as Osman was confident of further improvement in the results remaining six months of the financial year.
During the period one brand new store was opened in Letlhakane (Letlhakane Shopper), while the Palapye Shopper was revamped to give it a fresh feel and the Gaborone West Cash & Carry along the Gaborone station road was relocated to G-West industrial on the same street with Trade World.
Three new Shopper stores are scheduled for opening during 2019 in Kazungula, Charles Hill and at Setlhoa, opposite Airport Junction Mall with the Charles Hill Shopper scheduled for opening this February.
The new Shoppers opening this year are expected to create not less than 600 jobs directly, according to Osman.
Despite announcing profits for the Sefalana Trading segment, pressure on margins was reported to still be strong in both retail and wholesale as the group try to remain competitive by focussing on enhancing shopping experience for customers through better deals and extensive range of products.
The Sefalana rewards cards, one stop shop concept with the inclusion of post office services in some Sefalana shops, as well as withdrawal of cash in conjunction with FNB, amongst others.
Osman also revealed that Sefalana campaigns such as the Win-a-Kiosk, which gave away 26 mobile kitchens and shopping vouchers was geared at economically empowering Batswana to start their own businesses, while the P1.7 million cash give away promotion that ended on Saturday with grand finales all over the country, targeted the ordinary shopper with cash prizes at each of the participating 25 shopper stores across the country.
The rise in profitability of Botswana’s Sefalana trading segment may have been sweet music to the ears.
However, Namibia continues to demonstrate its value to the group, contributing 29.2%, against Botswana’s trading consumer goods’ performance of 21.25%. Sefalana’s decision to break into the lucrative South African market, has also been hailed as a masterstroke in the improved Group’s results.
For the second year running, the Group continues to reap dividends of R50 million a year from the South African investments.