It’s a little over 10 years since Sefalana’s bold decision to extend its empire beyond Botswana’s borders and into Namibia; the move is bearing rich fruits for the company.
Confirming Metro Namibia’s growing importance to Sefalana, the Group’s Finance Director, Mohamed Osman revealed it contributed 33 percent of revenue and 30 percent of Profit Before Tax (PBT) for the six-month period between 30 April and 29 October 2023.
“Turnover amounted to P1.6 Billion, a growth of 3 percent on the prior period despite one less trading week. PBT amounted to P62million, broadly in line with the prior period. Our operations in Namibia continue to grow despite clear indications of stress in the economy,” stated Osman on Friday (26 January).
He pointed out that this success comes despite significant pressure on margins caused by stiff competition, including high unemployment in the country.
“Low economic performance has forced customers to focus on essential products and shy away from luxury and higher margin product,” said Osman adding similar trends are being experienced in Botswana.
The finance guru commended Metro Sefalana Namibia for contributing significantly to overall Group results each year, noting it remains the largest Fast Moving Consumer Goods (FMCG) business in the country.
“At the start of the [reporting] year, we had 23 stores across the country. In September 2023 our first Metro Fresh store and Metro Home store were opened providing an exceptional and unique offering to our customer base in Windhoek. We are confident that this will be a success and that additional similar stores will be opened throughout the country. This is expected to enhance margins over the medium term,” he said.
Having first ventured west of the Botswana border back in December 2013, opening-up in Katima Mulilo, Sefalana’s Namibian footprint now includes 25 stores, the latest launched last November in Luderitz.
“We continue to look for new suitable locations for store openings as we have now met our medium-term target of 20 stores. There are new stores in the pipeline that are dependent of the landlords completing their sites. Expansion will be cautious given the current economic environment,” concluded Osman.
