Sefalana posts impressive half-year results
Monkagedi Gaothobogwe | Friday January 31, 2020 13:20
The group realised a whopping 48% sales growth, following a subdued two years. The Botswana Stock Exchange-listed grocer announced revenue of P2.8 billion, up 11% from last year. According to the latest report, Sefalana Botswana contributed 57% and 29% of the group’s revenue and profit before tax respectively, as they opened two new stores in Kazungula and the largest Shoppers Store at Setlhoa, along the A1 road, where they also opened their first petrol station and quick shop. Sefalana also announced they will be replicating the Setlhoa example with the relocation of their Broadhurst store to a strategic location along the A1 road, where it will be more convenient for drive-by customers. The relocation is expected to be complete after 12 months, but the deputy CEO said the site for their second A1 road store has been secured while the Broadhurst one has also found a taker.
Announcing their half-year results on Thursday in Gaborone, Sefalana also waxed lyrical about their beverage division, as their milk product surpassed expectation with over a million sales in December alone, as market demands soared.
Sefalana Group finance director and deputy CEO, Mohamed Osman attributed the strong performance to the recovering buying power of Batswana.
He said since last year, signs of economic growth were trickling down to them, indicating that there are also overheads cost reduction, which had resulted in the group saving P10 million a year from the exercise alone. However, Sefalana also reported subdued business in Lesotho and Namibia due to economic conditions, with Lesotho reported to be experiencing one of their worst economic hurdles.
Meanwhile, the group’s deputy CEO teased his audience, announcing that they had been in discussion with a regional player and that some very good news was imminent.
Osman also hinted that Indian automobile manufacturer TATA’s owner, recently visited Sefalana with the intention to invest in Botswana and that the investor has already met with President Mokgweetsi Masisi about setting up shop in the country.