Botswana operations lead the way
Sefalana Group’s operations across various sectors and countries have once again seen the entity deliver exceptional results.
The retail giant raked in revenue of P9.7 billion for the financial year 2023/24 (April to March), with Botswana the leading contributor, accounting for P5.2 billion.
In the end, the group’s profits stood at P442.8 million before tax, dropping to P335.5 million after the taxman took his cut.
Locally, Sefalana operates 125 retail stores, which represent two/thirds of the group’s business and include: 56 liquor outlets, 34 Shopper stores, 25 cash and carries, five convenience stores, four hyper shops plus one catering outlet.
Combined, the stores raked in P182.9 million in profit before tax, while Sefalana made a total of P306 million before tax locally, thanks to its other BW-based operations.
These include the company’s manufacturing portfolio, mainly the Foods Botswana Sechaba brand, which makes sorghum and samp, and cooked up P60.2 million.
Additionally, the empire’s property sector made P54.9 million, while its commercial motors and mechanised farming wing contributed P7.6 million.
Other countries portfolios also performed well. Namibia came in second with P101.6 million profit before tax, Lesotho at P20 million, Zambia P15.5 million and Australia accounting for P3.1 million.
Confirming the company’s 2023/24 financial results on Tuesday, Sefalana Group’s Managing Director (MD), Chandra Chauhan said they continue to invest significantly in inventory to minimise supply constraints.
“This has enabled us to reduce stock-outs and provide our customer base with a consistent product offering. There have been numerous price increases from our suppliers in South Africa over the 18 months and where possible we have accelerated procurement in these commodities to mitigate the impact of these increases. Diversification into wider product range and service offerings has been our focus to ensure our customers get what they desire at best value. Where possible, we support local producers with favourable trading terms and opportunities to provide entrepreneurs with reliable and sustainable customer base,” said Chauhan.
The MD added he was particularly pleased with Sefalana’s manufacturing unit, Foods Botswana, which continues to grow.
The unit is largely dependent on the timing of orders placed by Government in respect of the various feeding schemes, and availability of raw materials.
“We anticipate an increase in Government spend in this area next year, following the announced extension of drought relief feeding schemes. FB has procured adequate grain to fulfill all orders placed with us and any shortfall that may occur as a consequence of other tenderers not being able to fulfil their obligations, such that the recipients of food from feeding scheme will be able to receive their required supplies. We remain available to manufacture and supply additional orders should we be requested to do so. We continue to focus on the manufacture and supply of branded products to utilise factory capacity and to create further employment,” said Chauhan.
The beverages division, which is heavily dependent on the manufacturing and supply of milk to government for the children’s feeding scheme, faced a number of challenges.
The repeated outbreak of Foot and Mouth Disease in South Africa over the last 24 months led to a shortage of raw material milk in the region, resulting in a decrease in production output.
“We previously put in place measures for the importation of pasteurized milk into Botswana; this is more expensive than raw milk but allows for a regular supply. We have been able to secure sufficient volumes of raw milk to satisfy around 80 percent of our target production levels,” revealed Chauhan.
