Home-grown grown diversified retail giant Sefalana Group saw its revenues hit P5.8 billion in 2020, defying the Covid-19 pandemic which strained the economy.
The group revealed in its 2020 annual report that the revenues went up by 10% for the financial year ended 30 April 2020 while gross profit also went up by 14% to close the year at P387 million.
In the previous year that ended 30April 2019 the Group revenue stood at P5.3 billion.
The Group Managing Director Chandra Chauhan said they managed to close the year with a sterling performance notwithstanding the difficult times during the Covid-19.
“All throughout the financial year, the greatest focus has been on the fast Moving Consumer Goods (FMCG) business in the various countries in which we operate, where we have placed considerable efforts to revive and improve margins and relative contribution to Group results,” said Chauhan.
Chauhan said they made considerable progress in this area in the first half of the year but were negatively impacted when their stores were restricted in terms of permitted customer numbers.
However, the MD said they benefitted from the second tranche of returns from the South African investment portfolio which is performing broadly in line with their plan.
“Overall, our Botswana business generated P135.6 million of profit, up 4% on the prior year. Our property portfolio held in Botswana performed well, contributing 1% and 5% to Group revenue and profit before tax respectively,” Chauhan said.
Profit before Tax of P259 million was flat on last year but that was on the back of 12% increase on the previous year, which in itself was a 34% increase on the year before that, noted Sefalana.
As the 2019 financial year marked the end of five-year Group strategy, Sefalana Managing Director said during the period they successfully expanded into Namibia, Lesotho and South Africa.
“The new 2020-2025 strategy has been developed and aims at further growth but is largely in the existing areas in the region where we are present and also in the one territory outside the region where we have done extensive evaluation over the 18 months – Australia,” said Chauhan.
Chairman of Sefalana Holdings Company Limited Dr Ponatshego Kedikilwe is delighted by the Group resilience amidst the difficulties presented by Covid-19 during 2020 business operations.
“I commend my fellow Directors, the Senior Management and all the Sefalana employees for maintaining resilience over Covid-19 lockdown period of uncertainty and putting parameters to ensure business continuity and minimal impact to our operations during this uncertain time,” he said.
On 27 July 2020, the Board of Directors of Sefalana Holding Company Limited declared a final gross dividend of 27.5 (twenty seven a half) Thebe per ordinary share, the Group has revealed.
Meanwhile, the Board of Sefalana is pleased to announce that Sefalana’s Group profit before tax for the 6 month period ended 31 October 2020 will be between 21% to 23% (approximately P25 million to P28 million) higher than that reported for the comparative period ended 31 October 2019 which amounted to P121.1 million.
Sefalana will be publishing its consolidated financial results of the Group for the 6 month period ended 31 October 2020 by the end of January 2021, according to a notice posted on BSE X-News.