Sefalana Group has announced that its profits for the year ended April 2018 will be higher than last year.
In the same period last year the group recorded 16 percent decline in profit before tax to P173 million. This decline was attributed to the depressed economy and low levels of spending for both government and consumers.
The Group Finance Director, Mohamed Osman highlighted in a statement that the group net income for the year will be higher than the previous year. “The board is pleased to announce that Sefalana’s Group net income for the year ended April 30, 2018 will be higher than that reported for the previous year,” announced Osman.
Presenting the results for the previous period, Sefalana Group Managing Director, Chandra Chauhan said the year has been one of the most difficult years for the Group as the economy as a whole has been depressed and consumer spending has fallen significantly.
“This in turn has had an impact on consumer confidence and ultimately on spending patterns. This has translated into difficult trading conditions not only for us in the fast moving consumer goods sector, but also a number of other sectors in the country,” said Chauhan.
In its half year ended October 2017, the Group reported eight percent decline in gross profits to P139.4 million while its revenue increased by 13 percent to P2 billion.
The Group says it experienced increased pressure on margins in both its wholesale and retail operations. Overall, profitability for this division reportedly fell by 39 percent and efforts are said to be underway to limit the impact of these pressures as the Group anticipates restored market conditions and improved results in the coming six months.
At the beginning of the financial year, Sefalana operated a total of 51 stores in Botswana. Chauhan said the Group continued to experience difficult trading conditions as last year with spending remaining significantly lower than in previous years as consumer spending continued to be cautious. However, the group continues to focus on its core segments, the Fast Moving Consumer Goods business.