Sefalana expands Namibia footprint
Already impressive, Sefalana Group plans to expand its Namibian footprint by delving deeper into the country’s retail sector.
The wholesale giant has made huge strides in Namibia through its trademark Cash and Carry and Hyper stores.
Established as the largest player in Namibia’s fast moving consumer goods business, Sefalana boasts 21 stores in the south western nation, the majority of which are wholesalers.
Having opened a new Cash and Carry shop as well as its first Metro Liquor outlet this year, Sefalana has already exceeded its medium term target of 20 stores.
With this milestone met, the company now has its sights set firmly on the long-term.
“The aim is to enter the retail market in Namibia with opening of five retail stores and a long term plan to have 25 stores in five years. We have always been successful in Namibia, so in retail we expect to achieve the same feat,” said Group Managing Director, Chandra Chauhan at the company’s presentation of audited financial results last Friday.
Metro Namibia contributed 33 and 32 percent respectively of revenue and profit before tax which equates to P3 billion and P130 million, marking a 21 and 10 percent improvement from the previous year.
“Our operations in Namibia continue to grow despite indications of stress in the economy albeit at a slower rate than in the past. We have noted significant pressure margins as a result of the supply constraints from South Africa. Expansion will be cautions given the current economic environment,” he said.
Meanwhile, having recorded impressive revenue of P9.1 billion – and a profit of P300 million – for the financial year 2022/23, Sefalana Group aims at reaching a P10 billion turnover by 2025, a stretch they expect to achieve by maximizing contribution from all of the group’s business units.
This marks a significant improvement from the P7.5 billion which was realised in the prior year.
Botswana and Namibian trading consumer goods operations stood out in revenue contributions with stellar performances of P4.8 billion and P3 billion respectively.
By the end of the year, Botswana business comprised four hyper stores, 25 Cash and Carry stores, 31 retail supermarkets, 58 liquor stores, four convenience stores and one catering outlet therefore taking the group’s tally locally to 123 stores.
“We are in search of suitable sites for further growth. There are a number of locations in the pipeline where progress is made. We estimate an average rate of five new stores per year for the foreseeable future. Being mindful to the level of saturation, we will only open new stores where there is a sound business case to do so,” said Chauhan.
The Botswana Stock Exchange (BSE) listed company has business portfolios in fast moving consumer goods (retail and wholesale), manufacturing, beverages, commercial motors and financial services, with operations in Botswana, Lesotho, Nambia, Zambia and Australia.