… as Namibia boosts performance
Sefalana Group, a listed retailer which among other businesses owns Shoppers supermarkets, has recorded exceptional results despite challenging economic conditions in this country, the Company’s April 2015 full year financial results have indicated.
Sefalana Group profit before tax has increased by 23 percent and the Group’s revenue is P3.5 billion, up by 46% from the previous year.
“We are happy to report that, despite some challenging economic conditions during the year, and significant increases in the cost of borrowing across the country, coupled with on – going pressure on consumer and government spending, Sefalana has remained competitive, achieving an overall profit before tax of P191.1 million for the full year. This represents a 23% growth in profit compared to the year ended April 2014,” said the Group Managing Director Chandra Chauhan when presenting the Company results last week.
“During a time where pressure on disposable income is clearly evident in the Botswana market, this is a very positive indicator to us. It shows that the Sefalana brand is gaining more and more traction across the country,” he said.
Chauhan said Sefalana is expecting greater growth and success during the ensuing years as the local economy recovers.
“We continue to seek additional suitable locations for further store openings as we move towards our target of 70 stores across Botswana. Our model remains to be focused on opening new stores only where it is viable and does not cannibalise other existing Sefalana stores,” he said.
Sefalana currently owns 68 retail stores in Botswana while in Namibia the group operates 13 supermarkets.
He added that Namibia business has yielded strong performance since take-over in July 2014.
During the year, the Group acquired the entire 12 Metro chain stores in Namibia and the acquisition increased the store compliment in the country to 13.
The MD noted that these newly acquired stores outperformed the comparative period under its previous owners by over 15% for the 10 months results since takeover.
the Namibian business contributed over P800 million to the Group’s revenue.
“This represents 23% of Group turnover. We are very proud of these results and expect this to be a sizeable and growing segment going forward. We are very excited about this new market and look forward to extracting further value from it. Other potential sites in Namibia are also being considered for additional store openings. We are also evaluating other territories across Southern Africa and will look to enter those areas in due course, if considered feasible,” said the MD.
In addition to retail stores, Sefalana group owns Commercial Motors Company which sells vehicles, Mechanised Farming (Pty) Limited selling generators and tractors, Food Botswana Company which manufactures Tsabana and Malutu to supply government feeding program, property business and Kgalagadi Soap Industries (KSI) business which manufactures soaps and detergents and export into the region.