The retail supermarket group, Sefalana, has recorded impressive profits for the six months period ended, 31 October 2012,thanks to an ambitious expansion plan.During the period under review, the owners of Sefalana Cash and Carry saw Profits Before Tax bulking up by 29 percent to record P44 million. Sefalana Group managing director, Chandra Chauhan acknowledged strong contributions from its other trading businesses.
He said during the period the group increased its stake in certain entities where it has identified further growth potential which is expected to ultimately further enhance shareholder value.At the beginning of the financial year, the Botswana Stock Exchange listed group comprised of three Sefalana Hyper Stores, 25 cash and carry stores and 13 supermarket retail stores of shoppers brand across the country.
During the reporting period, the group increased its market presence by opening an additional Shoppers supermarket in Selebi Phikwe. “We have five new stores planned for opening in 2013, including one in Nkoyaphiri in February 2013, and another in Tlokweng in April/May 2013,” said Chauhan.
He said the improved performance of their retail stores contributed to 38 percent and 59 percent of the growth in this segment’s revenue and profit before tax, respectively. The group recorded a 20 percent revenue to record P1.1 billion.
Further Chauhan said their continued focus on Fast Moving Consumer Goods (FMCG) also brought a positive contribution. Further, he said improvements in Shoppers store performance was driven by provision of a larger product range, improving quality of service and understanding the market lead to the groups impressive results.
Sefalana is further expecting a growth and success in this business segment during the second half of the financial 2013 year and in ensuing years and continue to seek suitable locations for further store openings.
Sefalana remains optimistic about the future and expects to grow the business through continued focus on core business segments.
The Sefalana share price has steadily increased from P2.75 at 1 May 2012 to P 3.11 at 31 October 2012 and to its current price of P 3.40. However the group believes that their share price is significantly undervalued with a Dividend Yield of 7.7 and Price Earnings Ratio of 7.2.