Wholesaler’s sweet success hits new highs
It was yet another six months to celebrate for Sefalana Group, as the wholesaler saw its net assets grow by P200 million between April and October last year.
The retailer’s assets now exceed its liabilities by a massive P2.2 billion as Sefalana continues to go from strength to strength.
The company’s shareholders were richly rewarded for this continued success, with the group paying out a total of P75.2 million in dividends for 2022.
The huge numbers represent Sefalana’s best half-year results to date and come on the back of their best full year results (released on 24 April 2022) in the company’s 48-year history.
This was revealed in the Group’s unaudited financial results report for the half-year period ending on 30 October 2022 and dividend announcement to indicate its achievements.
The report outlined a number of financial highlights as Sefalana moves away from the gloom of Covid-19, which has been the centre of the group’s trading activities and decisions for almost three years.
Among the highlights, Sefalana saw its revenue grow by 29 percent from the previous six months, reaching an impressive P4.5 billion.
Gross profit [the profit a company makes after deducting the costs associated with making and selling its products] stood at P321 million – an increase of 31 percent – while Profit Before Tax (PBT) rose to P195 million, up from 28 percent.
As of 30 October, the Group’s market capitalization [the total value of all its shares of stock] amounted to P2.4 billion, making Sefalana the largest in the Retail and Wholesale sector on the Botswana Stock Exchange.
“With this continued level of growth, the group has created employment for an additional 493 staff during the period taking their total number of staff to 6, 112,” reads the report.
They remain confident of creating further jobs in the second half of the financial year and continue to focus their employment drive on citizens in all our areas of operation, with Batswana making up over 99 percent of its entire workforce.
Sefalan’s diversification beyond Botswana’s borders in the last seven years also contributed to the group’s overall performance.
The report notes each economy presented its own unique opportunities and challenges, tailoring their model of business to suit each economy accordingly.
Metro (Sefalana) Namibia contributed 34 percent of revenue and PBT for the year, with turnover amounting to just over P1.5 billion, a growth of 23 percent on the prior period.
As for Sefalana Lesotho, turnover of P413 million was achieved, which is 19 percent up on the prior period, and a contribution of 9 percent to total Group revenue.
“A PBT of P5.8m was generated, an increase of 53 percent on the prior period,” reveals the report.
Additionally, Sefalana Group has investments in Australia as well as a warehouse and office space in Zambia.
