Sefalana Holdings Limited is expected to make a double-digit growth in profit from Namibian operations, company directors said on Wednesday, inviting fresh optimism that the listed company made the right move by acquiring the mentioned retail stores.
The announcement was made by Chairman Julian Nganunu and Managing Director Chandra Chauhan when announcing the company’s financial results for the year to April 2014 on Wednesday. The revelation comes weeks after the listed company made its first acquisition in the region’s fast moving consumer goods by acquiring 12 metro stores in the Southern African country. “This acquisition is expected to increase turnover by around P800 million in the first 10 months of trading and contribute approximately P30 million to profit,” Chauhan said in a statement. The group, which has assets in property, retail, manufacturing among other sectors, has managed ‘to remain competitive by achieving an overall profit before profit of P156 million for the year ended April 2014’. This represents 6 percent growth from the comparative period April 2013.
Meanwhile, revenue for the year to April 30 2014 was P2.4 million. The group reveals that a specific P100 million long term 915 years) debt facility has been entered into to fund its planned capital development projects scheduled for the next three years. Sefalana Cash and Carry contributed 89 percent and 58 percent of the Group’s revenue before tax respectively, for the financial year. At the beginning of the year, Sefcash comprised three hyper-stores, 25 five cash and carry stores and 19 supermarket retail stores across the country. The supermarket has a target of 40 stores in Botswana. “The improved performance of our retail stores contributed significantly to the growth in this segment’s turnover and profit before tax,” the company has said. The company is currently fighting hard to regain the market share they lost due to the rise of Choppies Enterprise Limited.
Choppies is a dominant player with retail operations in Botswana, Zimbabwe and South Africa. To counter Choppies, the company has announced massive expansion into the local and regional retail scene. Sefalana, which has over the years enjoyed multi-million tenders from government feeding programmes, is planning to acquire more assets in the property sector. A new head office has been planned at Broadhurst. The company has already received P100 million specifically to increase its property assets. “Our Zambian property is fully let and continues to generate very good rental stream,” said a statement. Going forward, Sefalana plans to expand within Namibia. Shareholders will receive 12, 5 thebe as dividends.