With the festive season approaching, majority of businesses are optimistic of good revenue prospects, BG Business has established.This is a season, where people get to celebrate, therefore deciding to buy more commodities, especially, food, clothes and beverages at a very expanded rate than they used to.
With many people taking trips during the festive holidays to relax with families and friends, the hospitality sector could be one of the biggest gainers, not only from local travelers but also mostly from the deep pocketed tourists from foreign countries. The commercial banks on the other hand are also likely to get a boost from people who would be applying for loans either to finance their leisure trips or to purchase motor vehicles.
BG Business took time to talk to a few businesses that are already recording increased sales. Ramachandran Ottapath, chief executive of Botswana’s leading chain supermarkets, said the festive season is an excellent time for business. “Since October, Choppies sales have been increasing satisfactorily and by December, we are expecting a serious boost,” said the CEO of Botswana Stock Exchange quoted company. The Choppies group’s recorded P3.3 billion revenue, from P2.4 billion of the previous corresponding period.
Now with a 20 percent boost expected by the CEO over the festive season, the company could raise extra revenue that exceeds P600 million, that would consequently boost the company’s profits for the next financial year. Choppies has got over 51 stores in Botswana and 12 stores in South Africa. Likewise the African focused, hospitality services provider, the Cresta Group also expects a boost from the season.
The group’s head of sales and marketing Patrick Chivese said during the season, many people decide to travel to places for holidays where they choose to spend their time in lodges and hotels, treating themselves with family and friends to a nice time. Although Chivese said the festive season is bad news to their hotels based in towns like Francistown and Gaborone that rely mostly on corporate companies, business tends to skyrocket in resort areas like Kasane and Maun. “Generally we expect a 70 percent increase in the number of guests we receive during the festive season,” he said.
For the half year ended 31 June, the Botswana Stock Exchange listed group saw a 22 percent growth in its revenues, which shot to P109 million, in comparison to the prior corresponding period, which recorded P99 million. The increase was attributed to the 14 percent increase in the number of guests received. So with a 70 percent increase of guest mainly foreign tourists, the group’s revenue will blow over the roof.
Sechaba Holdings Limited, the mother company to Kgalagadi Breweries Limited and Botswana Breweries Limited, is also counted among the biggest gainers for the festive season. It is public knowledge that alcoholic beverages especially, are the most purchased commodities during the festive season. Although the KBL spokesperson, Mokoro Ketsitile was reluctant to respond to BG Business questions, prospects for the company’s revenues look brighter.
The company’s annual report for the year ended March 31 2012 revealed that profit after tax shot by 17.6 percent to stand at P355 038 000, despite an increased pressure, caused by the slow economic performance. Clothing and furniture companies are also likely to see their revenue picking to unlimited heights.