Sefalana revenue soars beyond P9bn
Lewanika Timothy | Tuesday August 1, 2023 06:00
The whooping revenue is an uptick of 21% compared to the prior financial year. The group reported that for the same financial year it generated profits of P403 million, as profit before tax (PBT), which represents a growth in profit of 21% a growth that represents strong financial performance.
Delivering the financial results for the reporting period, Sefalana group managing director (MD) Chandra Chauhan said the strong financial performance largely owed to the fading away of COVID-19 effects and the improvement in consumer spending. “The harsh effects of COVID-19 on the macro and micro economic have faded away, and consumer spending has improved though not fully recovered,” he said.
Chaunhan further said the bumper financial results recorded by the group came amid a stiff economic environment mostly marked by supply constraints. The most pressing one being the Russia-Ukraine conflict, which has adversely affected the supply of food commodities like cooking oil and wheat. “We operate amid an environment with enhanced competition and raw material shortage largely because of the ongoing war between Ukraine and Russia and this gave us a lot of challenges as a group,” he added.
To mitigate and abate drowning with the financial current, Chauhan said the group had to impose efficient stock management practices, that allowed them not to get caught up in price fluctuations in the commodity market as prices were extremely volatile during the financial year. Chauhan further revealed that they have been investing rigorously in their best performing sector which is the Fast Moving Consumer Goods (FMCG) business. The business grossly deals with the sale of consumer durables and much of the attention was channelled towards enhancing this sector because it has been experiencing marginal pressures due to inflationary pressures. “In respect to our business, our greatest focus has been in the FMCG business where much disposable income has been constrained,” he said.
Sefalana has most of its operating footprint in Botswana with Botswana alone contributing to 64% of the group’s profit before tax. Chauhan further revealed that the Botswana business units generated P259 million as PBT compared to P192 million in the prior year. The company has enjoyed portfolio diversification in other sectors as well with growth to other sectors like manufacturing and beverage divisions. Sefalana plans to open five new stores in Botswana in the upcoming financial year and five additional ones in the same year at Namibia where it has been growing its market share.