Sefalana undeterred by P24m loss

Sefalana has incurred a loss in profit for the year, recording P89 million from P113 million that was recorded in the prior year on the corresponding period.

According to the group’s recently released audited financial statements for the year ended April 30, 2021, the loss was contributed by the challenging current environment.

Managing director Chandra Chauhan said the group had put in place measures, as early as November 2019, in anticipation of the impact of the pandemic and this has helped them navigate through the difficult times.

“On an ongoing basis, we look at ways in which we can mitigate the effects of the pandemic. Our greatest focus has for some time now been on the core Fast Moving Consumer Goods (FMCG) businesses where we have placed considerable efforts to enhance margins and relative contribution to group results,” he said.

In addition, the group’s manufacturing operations, which support the FMCG business, have been noted as the key focus areas for them. According to Chauhan, these have performed well during the period despite certain challenges beyond their control.

Chauhan further shared this year’s plans of progressing with their scheduled construction of a 3,000 square meter warehouse at Foods Botswana beverages to accommodate growth. This will be used for storage when they proceed with the group’s bottled water and fruit juice plant in late 2022, which was originally expected to be in place by September 2020 but had been put on hold due to the onset of the pandemic.

“We are currently evaluating another manufacturing business in Botswana. Details of this potential venture will be provided to shareholders once firm plans are in place,” he said.

The MD said their diversification strategy across both trade sectors and countries over recent years has helped maintain the group performance, and support sustained long-term growth.

At the beginning of the financial year, Sefalana operated four hyper stores, 25 cash and carry stores and 33 supermarket retail stores across the country, giving the group a total of 62 stores in Botswana. During the period, they expanded the national footprint through the opening of an additional Sefalana Shopper retail store in Ramotswa and at Molapo Crossing in Gaborone.

“Both these new stores are performing well and are proving popular with the customer base in the area. In December 2021, another Sefalana Liquor store was opened in Mahalapye,” he said.

Sefalana operated four hyper stores, 25 cash and carry stores

and 33 supermarket retail stores across the country, giving the group a total of 62 stores in

Botswana.