Sefalana profits up 10%
Mbongeni Mguni | Wednesday July 31, 2024 16:55
According to its 52-week results released on Tuesday, the majority citizen-owned group posted pretax profits of P443 million, up 10% despite pressures on margins and higher competition and supply chain challenges.
Sefalana, which began operations with six stores and a maize mill in 1974, posted topline revenues of P9.7 billion. However, it came under pressure in its margins, particularly in its wholesale and retail divisions. Directors noted that while shoppers were returning to stores more frequently, they were still cautious in their spending and focusing on value packs, rather than luxuries, which had an effect on gross margins.
Retail and wholesale activities across Botswana, Zambia, Namibia, and Lesotho were generally stronger during the period, with Sefalana adding more stores to its footprint. Directors said the group would continue looking for opportunities to expand in order to maintain a consistent growth track record. Several new projects are being pursued to support an expanded long-term sustainable profit stream, the directors said.
The group declared a final dividend of 65 thebe, its highest ever, while on the end of the spectrum, employment numbers rose by 611 positions to a total number of 7,234.