Thursday, October 29, 2020

Sefalana grows on the back of recuperating economy

By Kabelo Seitshiro

Sefalana is to publish its unaudited consolidated financial results for the 6 month period ended 31 October 2018 by the end of January 2019.

The company says it is encouraged by the strong performance of its Namibia and Lesotho businesses which have both provided and augmented contribution towards overall Group results.

Sefalana Group Managing Director Chandra Chauhan stated in the company’s 2018 annual report that the local Botswana economy continues to recuperate from lower levels of spending and higher levels of unemployment.

“Our South African investment has generated a sizable first year return. This has contributed significantly to this year’s results,” he stated.

The Group says in a few weeks its profit before tax for the six- month period ending 31 October 2018 will be significantly higher than what was reported for the comparative period of 31 October 2017.

The Group expects a turnover of between 15-25 percent (approximately P12.5 million to P20.8 million) higher than the comparative period that ended 31 October 2017 which amounted to P83.1 million.

He says growth of the total number of stores increased from 69 to 73 as well as investment in a South African consortium which owns a further 14 stores.

He stated that with these developments they will be working on additional store openings in the coming year as they focus on further strengthening the brand as a modern, profitable business rooted in fulfilling the needs of the customers

Chauhan says with the economic challenges experienced in the local market, their diversification into neighbouring countries over the last four years has helped maintain the Group’s overall performance. He adds that Namibia continues to grow and generate enhanced profitability.

“Lesotho, despite its political climate, is also already showing positive growth. Our most recent entry into the South African market has resulted in a sizable contribution to the bottom line results for the current year,” says Chauhan.

He further states in the annual report that they are optimistic about the new territory and look to continued success in the regional expansion strategy.

He adds that they are also growing the retail business and establishing a strong presence in the local market as Sefalana Shopper now increasingly becomes a store of choice for the Botswana market.

Sefalana Group is expected to beat its biggest yet troubled competitor Choppies Enterprises Limited when it comes to honouring the Botswana Stock Exchange Limited (BSEL) listing rules. Choppies still remains suspended from trading at the BSEL.

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