- Revenue up by 20% to P3.5bn
- Gross profit at P238m – up by 11%
- EBITA at P145m
- PBT at P153m – up 3%
“Despite the challenges we face in the current environment, we are delighted to be able to report to you our best half-year results to-date. This is on the back of reporting our best-ever (in our 47-year history) full year results to 30 April 2021,” says the Group in the results.
For the six months to October 2021, the Group’s revenue was P3.5 billion – up 20 percent as compared to the prior period. Gross profit was P238 million – up 11 percent on the prior period. Earnings before interest, tax and amortization (EBITA) was P145 million – up 5 percent on the prior period while profit before tax was P153 million – up 3 percent on the prior period.
Sefalana’s Botswana-based business units contributed 49 percent to group profits. “Overall Botswana business units have generated P75 million to the profit for the period, in line with the prior period,” it says. “From the three African territories in which we are present, the Botswana operations have experienced the greatest impact of the pandemic and related economic stress.”
Sefalana Cash & Carry Limited, which is the Group’s consumer goods portfolio, contributed 52 percent and 26 percent of the revenue and profit before tax for the reporting period respectively. Turnover amounted to just over P1.8 billion, 13 percent up on the prior period. Profit was P40 million, up 15 percent on prior period.
Commercial Motors (Pty) Limited and Mechanised Farming (Pty) Limited contributed 1.2 percent and 1.5 percent to Group turnover and profit before tax, respectively while in the manufacturing segment, Foods Botswana (Pty) Limited contributed 3 percent and 6 percent to Group turnover and profit before tax for the period respectively.
The results show that the Group’s milling division is showing positive growth, with the Sechaba brand of products increasingly becoming a popular household name and a preferred choice for many regions across the country. In the beverages division, the Group says it has been awarded most tenders to supply with pasteurised milk for the government’s children feeding scheme. Sefalana is now focusing on building the Delta Fresh brand which is now available throughout Botswana in most retail outlets and is increasing in market share and popularity.
Their property portfolio held in Botswana performed well, contributing 1 percent and 16 percent to Group revenue and profit before tax respectively with almost all properties tenanted and leases in place being for periods between two and five years.
“The Kgalagadi Soap Industries (KSI) property development of 5,000 sqm of warehouse space remains fully let with on-going demand for the sites,” the Groups says. “We are currently evaluating and developing plans for a number of our properties … Our P100million loan taken out for the purpose of developing property will begin its five-year repayment period in 2025.”
On future prospects, Sefalana says in the early months of 2022, it will be proceed with its planned construction of a 3,000 sqm warehouse at Foods Botswana Beverages to accommodate growth. “This will also be used for storage when we proceed with our bottled water and fruit juice plant in late 2022, which was originally expected to be in place by September 2020 but had been put on hold due to the onset of the pandemic,” it explains. “We are currently evaluating another manufacturing business in Botswana. Details of this potential venture will be provided to shareholders once firm plans are in place.”
Sefalana Holdings is a major retail operation with interests in the wholesale and retail distribution of fast-moving consumer goods in Botswana, Zambia, Lesotho and Namibia. It operates 20 major supermarkets under the retail name Sefalana Shopper; 25 cash-and-carry outlets trading under the name Sefalana Cash and Carry, three hyper stores trading as Sefalana Hyper Store, four liquor stores trading as Sefalana Liquor; and one cigarette distribution outlet trading as Capital Tobacco.
Well-known subsidiaries in the Group include Foods Botswana, Commercial Motors, Mechanised Farming, Vintage Travel and Tours and Kgalagadi Soap Industries. Its greatest focus for some time now has been on the core FMCG businesses with its manufacturing operations mostly set up to support its FMCG sector .
