Friday, 29 June 2018 10:09

Sefalana expects higher yields

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.

Published in Business
Friday, 04 November 2016 15:32

Sefalana keeps regional push alive

Diversified retail group, Sefalana has entered Lesotho market through a brownfield model, a development which has kept its regional push alive. Late yesterday (Thursday), the company announced  that it has purchased a large cash and carry going concern which will trade under the banner, TFS Sefalana.

Group finance director, Mohamed Osman told shareholders that the said entity will traded under TFS Sefalana for up to one year after which Sefalana will become the only name, the brand will come to be known in the mountainous country. Osman is excited that the latest development has allowed the group to continue with its expansion within the region.  Sefalana, which is quoted in the domestic stock exchange, is already trading in Namibia. It bought an existing group of supermarkets, Metro Cash and Carry Namibia after raising cash worth P255 million.

This time around the company also plans to raise P351 million to fund the latest acquisition. The funds will be raised through a Rights Offer. Osman has cautioned shareholders to exercise caution when dealing with its securities until further notice. The company, together with arch-rival, Choppies Enterprise Limited are the only known retail brands that are flying the country’s flag high in foreign lands.  Sefalana, which has also assets in property, manufacturing and milling has announced ambitious plans to claim its retail top spot from Choppies, another listed retail goliath.

In Botswana, the company has also rolled out a number of stores, made some acquisitions and also made available in-house brands. In Lesotho, the company will battle for the same market with South African retail giants such as Shoprite and Pick n Pay. Sefalana also competes with them in Botswana.

Published in Business

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