Thursday, November 30, 2023

Furnmart shrugs off tough trading conditions

Furnmart, the┬ácountry’s biggest furniture and home appliances┬áoutlet in the country,┬ásaw its┬árevenue┬ábulging despite the hostile trading conditions as it waged┬áa fierce┬áregional expansion that has taken it beyond the Southern African Customs Union (SACU) zone for the first time.

Revenue┬ájumped 22 percent┬áto P 698 million ÔÇô making it one of the best performing┬ábusinesses┬áin a recessionary period┬áunder John Mynhardt empire. Profit after tax┬á grew┬á by┬á four percent as┬á difficult trading conditions in┬á Botswana and┬á South Africa and exchange rates┬á ate on its margins, according to its ┬áfull year financial ┬áresults to ┬áJuly 31, 2010.

“We continue┬áour growth into the Zambian market and opened our flagship┬áZambian Furnmart in September in Lusaka. We are opening our first Home Corp in Lusaka in November,” chairman and chief executive officer, Mynhardt said.

Furnmart, part of the cream of Botswana businesses that are hungry for regional expansion, is aiming to tap into Zambian market with a population size of 13 million.

It also has operations in Namibia and South Africa where it is targeting the middle and lower segments of the market. And all told, it boasts of 80 stores spread across the four countries.

“Our focus in the recent┬áyears┬á(has been) on the diversification of our business in terms of markets and the business model has yielded dividends as our traditional business operation┬áin Botswana has been under pressure in the face of deteriorating market conditions,” he said.
“We will continue to focus on┬áexpansion through diversification, thereby offering our shareholders growth while┬áspreading country and business model risk,” Mynhardt said.

Mynhardt, who is one of the top richest people in the country and has wide
ranging business interests that include ownership of shopping malls, has vested interest in a number of unlisted retail stores such as Cash Bazaar and Taku Taku among others. 

The 40-year-old company has outlets in Namibia, Limpopo, Gauteng and Northweast provinces in South Africa under the flagship Xtreme Discount.

“Xtreme in South Africa is currently being rebranded as Furnmart in line with trading models in the other three countries in which we operate. This process should be complete by the end of 2011┬áfinancial year after which Xtreme trading name will no longer be in use,” he added.

In South Africa, the Botswana Stock Exchange listed company is fighting head to head with  some of the more established brands like Ellerines and  Joshua Doore, which have deep pockets  and  close to 200 outlets in that country alone.

Earnings  per share were  up four percent to  164.16 thebe  and  declared dividend  30.30 thebe per  share  for shareholders  registered on November 12 and will be paid out on November 22. It closed stronger at 1310 thebe on Friday.


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