03 Aug 2015

Sefalana Group managing director, Mr Chandra Chauhan says the group has exceeded the initial P3 billion pula mark for the 2015 Group financial year by half a billion. 

The Group has achieved an overall profit of P191.1 billion before tax which represents 23 per cent growth in profit compared to the year 2014.

Presenting the group’s 2015 financial results, Mr Chauhan said the turnover has grown to 46 per cent over the past 12 months where a lot of profit comes from the group’s new stores in Namibia.

He said the group’s acquisition of the entire micro chain in Namibia has yielded strong performance since the takeover in July 2014 stating that Namibia did almost a billion Rands in the first 10 months of trading.

Mr Chauhan noted that the transition and takeover of business in Namibia was smooth as Namibia business is identical to Botswana. He highlighted that the procurement from the same margin and supply are the same hence making business a success in Namibia.

He said the gross profit margin increased by 23 per cent as a result of the combination of a number of businesses that have done well. He continued to say profit before tax over the last 3 years has increased by 76 per cent at an average of 25 per cent every year.

He stressed that consumer trading business grew by 6.2 per cent and the earnings before interest, tax and amortisation went down by four per cent.

He however said Botswana which is the biggest market in terms of trading being Sefalana Cash and Carry was almost flat over the previous years as the country and the economy has been going through tough times.

Mr Chauhan said trading in other areas grew by 102 per cent which were mostly attributable to Sefalana acquiring large tenders. He said in manufacturing Sefalana group saw 43 per cent increase profitability. 

He noted that the overall revenue growth increased by 46 per cent and earnings before interest, tax and amortisation grew by 16.4 per cent. 

He said Sefalana Botswana contributed 65 per cent and 47 per cent respectively of the group revenue and profit before tax. ENDS