Sefalana Group has recorded profit before tax (PBT) of P290 million, a 12% increase compared to the P258 million recorded the previous year in the corresponding period.
This has applied not just to Botswana but also to Namibia and Lesotho. As a result, these sectors have done well during the year and have contributed 60% of the group’s reported PBT,” he said.
The group’s manufacturing operations, which support the FMCG businesses have performed well and further expansion is expected in the coming 12 months with certain projects being considered and evaluated.
Chauhan said the fruit and vegetable business that procures and supports the Botswana FMCG business has performed exceptionally well with improved quality enhancing the overall store offerings. Under manufacturing, Foods Botswana has contributed four percent and 11% to group turnover and PBT for the year respectively.
The profitability of the business is largely dependent on the timing of orders placed by the government in respect of the various feeding schemes and also wants the availability of raw materials.
“The Namibian business also has remained strong despite the local economy taking some level of strain. Through improved in-store offering and gaining further market share, this segment has contributed 30% of the group’s PBT for the year,” he said. Chauhan said the group’s diversification into neighbouring countries over the last five years has helped them maintain and grow the group’s overall performance as their business model has been tailored to suit each economy accordingly.
At the beginning of the financial year, Sefalana Cash and Carry operated four Hyper stores, 25 Cash and Carry stores and 29 supermarket retail stores across the country, giving the group a total of 58 stores in Botswana. In the first half, the group expanded their national footprint through the opening of an additional Sefalana retail store in Shakawe, Sefalana liquor outlet in Tlokweng and a refurbishment of the Molepolole store.
In the second half, the group expanded opening shops in Sebina and Metsimotlhabe. In May the group also opened Sefalana Shopper in Ramotswa and will open another one in August at Molapo Crossing.