Sefalana’s Namibian operations shine
Sefalana group said its profit before tax (PBT) went up five percent as shown by its latest financial statements.
Directors of the BSE-listed diversified retail and manufacturing business chain with specialty in food retail noted PBT stood at P205 million, as opposed to the P195 million recorded in the corresponding period on the prior year.
When presenting the financial results for the period ended October 29, 2023, Sefalana Group Finance Director, Mohamed Osman said this was largely contributed to their Namibian operations.
“This business makes a significant contribution to overall group results each year,” he said.
According to financial statements, during the reporting period, Namibia contributed 33% of the revenue and 30% of the PBT while turnover amounted to P1.6 billion, which was a growth of three percent on the prior year despite one less trading week.
Trading under the Metro Namibia, the group operates 25 stores that are strategically located across Namibia. Meanwhile, the group’s Lesotho operations generated a turnover of P405 million with a total contribution of nine percent to total group revenue while their Australian operations recorded a P7. 4 million loss as consumer spending declined due to the economy experiencing strain with interest rates.
Sefalana group operates 10 stores across Brisbane, Australia. In Botswana, Sefalana Cash ‘n Carry contributed 53% and 39% of the group’s revenue and the PBT for the reporting period, respectively. Revenue amounted to just over P2.5 billion, which was a three percent increase compared to the prior year.
At the end of the reporting period, there were four hyper stores, 25 Sefalana cash and Carry stores, 32 supermarkets retail stores which are Sefalana shopper, 58 liquor stores, four convenience stores and a catering outlet giving the group a total of 124 stores in Botswana.
“Each business sector and each geographical region continues to bring with it unique circumstances and challenges. Consumers on the other hand, have become increasingly price sensitive.
“This has had an adverse impact on our margins and the margins of our competitors,” Osman added.
According to the Finance director they continue to focus on the manufacture and supply of branded products to utilise factory capacity and create employment.
“Growth in this area is positive. The Sechaba range of products continues to be a popular household name and a preferred choice for many shoppers in the various regions across the country,” Osman said.