Milling division showing signs of growth
Sefalana Group has completed its portion of the 2015/16 Government tender for Tsabana and Malutu in April 2016 although there was a four-month gap between orders.
The group is optimistic about the forthcoming year where they prospect a larger proportion of Government food scheme tenders based on their milling track record and ability to supply.
The group also expects an increase in the Fast Moving Consumer Goods (FMCG) division of the business after realizing a decline in earnings for the year ended 30th April 2017.
The Group’s Managing Director Chandra Chauhan said this at the recent Sefalana Audited Group Financial Results in Gaborone recently, adding that the milling business closed with a satisfactory result.
Chauhan said the drop in earnings was attributable to the economic depression that has not only negatively affected the group’s FMCG sector but also a number of other sectors in the country, where Groups are reporting a drop in earnings.
The Managing Director outlined in the financial highlights presentation that the group’s revenue from last year was P4.3 Billion, up by twelve percent in the prior year while gross profit fell by four percent standing at P297 million.
He also stated that profit before tax stood at P173 million, down sixteen percent on prior year and that the total comprehensive income for the year was P157 million- up nine percent in the prior year.
Speaking on the Group’s manufacturing segment, which consists of Foods Botswana (FB) and a beverages division, Chauhan said the segment contributed five percent and three percent to the Groups’ turnover and profit before tax for the year respectively.
On the Group’s properties, Chauhan stated that the Botswana property Portfolio performed well, contributing eighteen percent to profit before tax. “Almost all properties are tenanted and leases are in place for between three and seven years, the KSI property development of 5000 sqm of warehouse space has now been completed and is almost fully let,” he said.
“We have completed our 2016 rebranding initiative that aimed to improve our stores by giving them a new look and feel, which our customers have welcomed and now expect from us,” he said, adding that the group has, in the past year, taken a conservative approach to new store openings in Botswana because consumer spending has fallen.