Consumer goods boost Sefalana returns, Botswana. Retail and wholesale
WeekendPost.co.bw. - Feb 4th 2014, 09:14
Sefalana Holding Company Limited has not departed from the trend of impressive results that have been posted by listed companies in the past half year. The Group’s unaudited financial results for the half year ended 31 October 2013 indicate rises in revenue, gross profits, profit before tax and equities.
According to a statement from the company, the Group’s Sefalana Cash and Carry and Shoppers retail outlets have focused on the Fast Moving Consumer Goods (FMCGs) business, which is responsible for boosting the Group’s returns, even within challenging times, economically.
It has also created efficiencies in the manufacturing wing, and maximising return from operations and ensuring that other parts of the Group operate efficiently and effectively, which has aided the profitability of the Group.
The Group experienced growth in several areas: revenue is up 2 percent; profit before tax is up 46 percent; basic earnings per share is up 55 percent; and net asset value (excluding non-controlling interests) is up 18 percent.
These growth rates have been predominantly underpinned by a continued emphasis on improving the company’s retail store offering, focusing on the provision of a larger product range, improved quality of service and better understanding of the markets’ needs; and smarter procurement of raw materials in the manufacturing business.
Currently, FB contributed 8 percent of Group turnover and just over 29 percent of Group profit before tax, awaiting the extension of its government tender to supply the Malutu and Tsabana sorghum and soya meal brands.
Sefalana owns 100 percent shares of Foods Botswana (Pty) Limited, which operates a factory in Serowe from which it mills and produces sorghum, soya and maize based extruded products, malt and diastatic malt.
The market for the products of the company are split between provision of enriched meals for the Botswana Government feeding schemes and its own branded products distributed through wholesale and retail outlets in Botswana.
“The improved performance of our retail stores during the period contributed significantly to the growth in this segment’s turnover and profit before tax. This has been largely achieved through better product offering and enhancing the shopping experience for our customers. Feedback we have received from our customers in this regard is very positive. Our wholesale division has maintained its competitiveness and grown,” reads the company statement.
Sefalana Holdings owns 79 percent of another independently listed company in Botswana, namely Sefalana Cash & Carry Limited (Sefcash), which comprises of 26 wholesale operations and 2 Hyper Stores.
In future, the company aims to have a presence of 40 Shoppers outlets in the country while a maize plant will be set up in Serowe towards the end of 2014, which is expected to increase Group profitability through efficiencies in the supply chain of maize based products sold by Sefcash in its retail and wholesale outlets.
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