The Sefalana Group has admitted that it has over the past three years been taking a cautious approach in its expansions locally.
The Botswana Stock Exchange quoted group says the policy was guided by the recognition of the saturation levels in the domestic market.
At the same time, the group says it has tried to avoid increasing the overhead costs in any particular area where the market size remains unchanged. Previously Sefalana attributed its business performance to depressed level of spending in the local economies in the region.
According to the Group executives, government spending remained significantly lower than in previous years while consumer spending continued to be cautious.
Managing Director Chandra Chauhan stated that the group’s diversification into neighbouring countries over the last four years has helped them maintain the Group’s overall performance. He added that Namibia continues to grow and generate enhanced profitability. In Lesotho, he stated that despite its political climate, adding that is also already showing positive growth.
Chauhan says the most recent entry into the South African market has resulted in a sizable contribution to the group’s bottomline results for the current year.
“We have made a success of our entry into Namibia and Lesotho. Our expansion into South Africa is already elevating the Group’s profitability. We are optimistic about this new territory and look to continued success in our Regional expansion strategy,” he stated.
Meanwhile the financial results for the year ended 30 April 2018 shows that the Group’s revenue was P4.8 billion, translating to 12 percent upward movement from the prior year. The Profit before tax was P232 million also up by 34 percent compared to the previous year.
The company declared a final gross dividend of 23 thebe per ordinary share.