Sefalana maintains growth
Sefalana Group profits continue with the upward route despite the current difficult trading conditions. In its year ended April 2021, the profit for the year, increased by 9.7 percent to P216.8 million.
Presenting the results, Sefalana Group Managing Director, Chandra Chauhan said although it has been a challenging year during which the COVID 19 pandemic has remained an obstacle and distraction for business and economic growth, they have tirelessly and actively worked to overcome these challenges, through finding new ways of doing business; and maintaining and growing market share, wherever possible in each of the business segments. “For the last 10 financial reporting years, with the exception of the April 2017 year end, we have consistently reported improved results each and every year. We are extremely pleased to report once again, our best ever results to date, despite the challenges we
have been facing.” Botswana business units have generated P177 millions of profit before tax, which is an increase
of 31 percent on the prior year. He said they endeavour to continually deliver and exceed expectations of various stakeholders through careful planning and execution of operational matters. “Greatest strategic focus, has been for some time now, on the core Fast Moving Consumer Goods ( FMCG) business, where we have placed considerable efforts to enhance margins and relative contribution to Group results.”
This has been applied to Botswana, Namibia and Lesotho. Chauhan said as a result these sectors have done well during the year and have contributed 60 percent of the Group’s profit. Namibian business has also done well this year and contributed 30 percent to the group profit.
“Our manufacturing operations which support the FMCG businesses have performed well and further expansion is expected in the coming 12 months with certain projects being considered and evaluated. We have also benefited from the third tranche of returns from our South African investment, which is performing broadly in line with the plan,” The group entered the Australian market May last year, through an investment of 40 percent associate company that operates in the fast moving consumer sector. Total purchase consideration for Sefalana’s investment in this business amounted to AUD 10.5 million ( P83 million). Chauhan highlighted that performance from this business is broadly in line with their plan and is already generating positive earnings before interest, tax, depreciation and amortisation ( EBITDA) in its first year. “The return on this investment will be seen in the medium to long term. During the short term, our presence in the market is increasing as we move towards achieving our target of 12 stores which will provide the critical mass to optimize on economies of scale and profitability. The Group’s share of losses, which includes once- off startup costs relating to this associate, amounted to P5.5 million for the year.”