Sefalana profits up 10%
Wednesday, July 31, 2024 | 450 Views |
On the rise: Sefalana is adding more stores to its retail and wholesale footprint PIC SEFALANA FACEBOOK
According to its 52-week results released on Tuesday, the majority citizen-owned group posted pretax profits of P443 million, up 10% despite pressures on margins and higher competition and supply chain challenges.
Sefalana, which began operations with six stores and a maize mill in 1974, posted topline revenues of P9.7 billion. However, it came under pressure in its margins, particularly in its wholesale and retail divisions. Directors noted that while shoppers were returning to stores more frequently, they were still cautious in their spending and focusing on value packs, rather than luxuries, which had an effect on gross margins.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...