Home Business Sefalana end the year with P231.7 m profit

Sefalana end the year with P231.7 m profit

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Sefalana end the year with P231.7 m profit
MANAGING DIRECTOR: Chandra Chauhan

Sefalana Group Managing Director, Chandra Chauhan says Sefalana generated a profit of P231.7 million before tax for the year ended 30 April 2018.

Chauhan said this during the announcement of the audited group financial results on Monday in Gaborone.

He said there has been a 34% increase compared to the comparative year of 2017 and a total comprehensive income of P189.1 million representing a 21% increase on the previous year.

He said this year they generated their best ever profit since inception.

“This time last year we reported that we had experienced one of the most difficult years of trading for some time. This was largely driven by a depressed level of spending in the local economy, however we were hopeful there would be signs of recovery.
We undertook to focus on cost saving initiatives and to continue to extract value from our well diversified group of businesses across the Region,” said Chauhan

The Managing Director further noted that through this approach they have been able to close this year on a very positive note.

Sefala’s investment into the South African consortium generated P33 million of income, the MD noted, adding that with the economic challenges experienced in the local market, diversification into neighbouring countries over the past four years has helped to maintain overall performance.

“Namibia continues to grow and generate enhanced profitability. Lesotho despite its political climate is also showing positive growth. Our recent entry into the South Africa market has resulted in a sizeable contribution to the bottom line results for this year,” he added

Chauhan said Sefalana last year invested R250 million into South African consortium and earned a fixed annual return of R50 million for five years.

The company will then have an option to convert this investment into a 30% equity stake in the consortium which performed well a year into its operations with positive future.

Concerning the difficult trading conditions experienced in Botswana in 2017 the Managing Director government spending remained significantly lower than in the previous years and consumer spending continued to be cautious.