Friday, May 20, 2022

FSG coffin business powers its profits

FSG, the sole funeral services provider listed on the Botswana Stock Exchange (BSE), said death business continues to defy the worst global economic recession as coffin and casket business revenue ballooned to push up profit after tax up 16 percent to P 7 million, the company said in its half year report.

The funeral service provider said in its six month to the end of June report that the country emerged from its worst economic recession in 40 years against the odds of inflationary hikes and continued sluggish global economic performance.

“During the period revenue from funeral related services continued to grow and the group maintained its market status as the leading player,” the company said in a stamen.

According to the figures, total revenue was up to P 22 million from P 21 million during a comparable period in the previous year with revenue coming from coffin and casket toping all other segments of the business.

The sale of coffins and caskets accounted for about P 12 million and it was closely followed by the funeral palour business by P 9 million.

FSG, commonly known as Lyn’s Funeral Parlour and Kagiso Funeral Parlour, paraded impressive results adding that assets have grown to P 131 million against the P 105 million that was reported at last full year.

FSG has been bold in the roll-out of targeted products into the market, including the funeral package schemeÔÇösuch as Mompoloki Funeral Cover ÔÇô saying the package scheme increased by 23 percent to P 10.6 million.

Last year, it introduced Phomolong Memorial ParkÔÇöwhere customers have the chance to buy bespoken graves before their death ÔÇô which is the first of its kind in Botswana.

The graves are available on cash basis and through insurance product to be developed and marketed by Botswana Life Insurance Limited.

FSG further fulfilled its undying appetite for the Zambian market as it opened an office in August in a market with a population size of 11.8 million people and high population growth rates of 1.6 percent.

Zambia is one of the southern African states with the highest HIV/ AIDS prevalence rate with 1.1 million people reportedly living with the disease while life expectancy in the copper rich southern African country has been brutally slashed to 38.6 years.

FSG is a holding company for four subsidiaries: Kagiso Funeral Parlour Ltd, M& N Coffin and Casket Manufacturers, Private cemeteries and V and N Coffins, which operates in ZambiaÔÇöone of the countries in the southern African region with the highest HIV/AIDS deaths until recently.

Lyn’s transformed its image in the early 2000s after Botswana Insurance Holdings Limited, the parent company of the giants, Botswana Insurance Fund Management and Botswana Life, took a stake in the company. That came with the transformation of its image from being a company active in the southern corner of the country into funeral services icon.

FSG dividend of three thebe per share payable on November 10.

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