The country’s leading funerals service outfit, Funeral Services Group (FSG) said its revenue and profit after tax for the year 2013 showed a moderate growth, despite operating in a challenging economic environment.
As a result, the Group retained its position as the market leader in the funeral services industry in Botswana. It indicated that continued investing in new branches in Botswana was part of the success. The group opened new branches in Pilane and Kasane while plans have been laid to open further branches elsewhere.
Across the border in Zambia, the Group during the year opened a new branch in Ndola in January 2013. FSG highlighted that the process to acquire land in Kitwe for a new branch is in progress.
“Although during the year revenue from Zambia grew by 36 percent over 2012, the Zambia subsidiary reported a loss. Marketing of funeral assurance policies has seen an encouraging growth. The Group is actively considering opening new branches in other towns within Zambia,” said Nikolic in the statement.
“The Group also invested in developing its brand image and modernizing its fleet and other equipment necessary for rendering superior service to its customers,” reads the statement signed by Managing Director Mike Nikolic.
A close look into the performance highlights shows that its revenue increased by 14 percent from P98 million to P111 million, while profit after tax increased by 12 percent from P27 million to 30 million.
At the same time, the group’s total assets now exceed P200 million with continued expansion in Botswana and Zambia.
“The global economic environment during the first half of 2013 was largely subdued but strengthened during the second half largely on account of marginal recovery in some advanced economies. Most major economies are still committed to maintain stimulus policies until sustained growth is witnessed,” reads the statement from the company.
FSG executives says the operating environment is expected to be largely similar to 2013 and however, “the Group shall continue to invest in infrastructure, new branches and expansion in external markets in line with the Group’s business vision and positive results are expected from this expansion drive.”