Sefalana has weathered economic challenges to post a 14 percent increase in revenue, signaling the group’s strong market penetration.
This week, Group Managing Director Chandra Chauhan presented Sefalana’s half-year financial results for the period ending 27 October 2024, highlighting impressive performance despite tough conditions, including regional inflation rates ranging between 2 percent and 5 percent.
Chauhan noted that the revenue of P5.4 billion marks a historic milestone, representing the highest half-year results in Sefalana’s history. He emphasised that the top-line growth reflects the group’s market share penetration, adding that Sefalana is satisfied with its growth trajectory despite challenges faced by suppliers and manufacturers, which limited in-store product availability.
The region’s drought also impacted the group, prompting the importation of supplies such as sorghum—a rare move for Sefalana, according to Chauhan.
“The trading environment in 2024/2025 has been extremely challenging,” said Chauhan. “Daily, trucks are forming long queues spanning kilometers, especially in Tlokweng, which complicates restocking efforts.”
Chauhan described 2024 as a particularly complex year for business, exacerbated by the regional drought. He revealed that Sefalana has only imported sorghum twice in its history: first, about 15 years ago, when it brought in 15,000 tonnes from Australia, and again last year due to local unavailability.
According to Chauhan, Sefalana had signed contracts for 30,000 tonnes of sorghum locally but received only 1,500 tonnes. “We imported 28,500 tonnes from Brazil,” he said.
Sefalana’s revenue for the period was primarily driven by its Botswana operations, particularly trading in consumer goods, which contributed P1.8 billion. By the end of the period, the Botswana Fast Moving Consumer Goods (FMCG) business comprised five hyperstores, 24 cash-and-carry stores, 34 supermarket retail stores, 60 liquor stores, seven convenience stores, one catering outlet, and four fuel stations, bringing the group’s total to 135 stores in Botswana—up from 128 stores at the end of April 2024.
New stores opened during the period included Shopper Mogoditshane Crossing (Shopper + Bottle Store), Shopper Letlhakane 1 Liquor, and Molepolole (Fuel and Quick). Additionally, upgrades were completed at Shopper Four Ways, Letlhakane Liquor, and Pilane Wholesale Liquor. The group has announced plans to further expand its footprint.
Chauhan highlighted that Metro Namibia continues to contribute significantly to the group’s results each year, accounting for 34 percent of revenue and 29 percent of Profit Before Tax (PBT). Turnover amounted to P1.8 billion, a 17 percent increase from the prior period, while PBT reached P63 million.
“It is quite amazing that a small company from Botswana decided to expand into the region and is now the largest player in Botswana, Namibia, and Lesotho,” said Chauhan.
Metro Namibia now operates 30 stores after opening three new locations during the period under review.
“We continue to grow in Namibia despite clear indications of a stressed economy,” Chauhan said. “There is significant pressure on margins, largely due to competitive pressures in the country and high unemployment rates.”
Namibia is reportedly grappling with unemployment rates as high as 47 percent. Nevertheless, Chauhan stated that Sefalana continues to seek new suitable locations for additional store openings. The group hopes that recent oil and gas discoveries along the Namibian coast will stimulate the economy and support further business growth in the coming years.
“Our intention for Namibia in the medium term is to open 10 stores,” revealed Chauhan.
In Lesotho, where Sefalana has operated for nearly a decade, Chauhan said the group remains the largest FMCG business in the country. With four wholesale stores, Sefalana has decided to expand into retail in Lesotho. A property lease has been signed, and the group aims to open its first retail store by April this year.
Lesotho achieved a turnover of P454 million for the period, contributing 8 percent to the group’s total revenue, with a PBT of P12 million—nearly double the prior period’s figure.
