Sefalana Holding Company Limited has announced its best-ever half-year financial results for the 26-week period ended October 27, 2024, building on the momentum of its record-breaking full-year performance in April.
Revenue surged by 14% to P5.4 billion, the highest half-year result in Sefalana's history, driven by strong market penetration across sectors and territories.
Gross Profit rose 8% to P362 million, though margins slightly contracted due to competitive pressures while Profit Before Tax (PBT) increased by 7% to P219 million.
On the back of the performance, the company declared an interim dividend of 12 thebe per share.
“We are proud to report our best half-year results to date. This is on the back of reporting our best full-year results to April 28, 2024. Our diversification across sectors and territories, along with continued innovation and focus on business development, has enabled us to consistently deliver better results year on year for our shareholders,” said Sefalana’s Group Managing Director, CD Chauhan.
The company attributed its success to its strategic diversification across sectors and geographies, continuous innovation, and an unwavering focus on operational efficiency. The company added eight new stores during the period, bringing its total store count to 135 in Botswana and enhancing its footprint in Namibia and Lesotho. Another 10 stores are planned for the next 12 months.
In terms of challenges, the group faced margin pressures due to inflation, supply chain disruptions, and increased costs of raw materials. However, Sefalana mitigated these challenges through effective cost management and strategic pre-ordering of buffer stock, resulting in record-high inventory levels of P1.4 billion.
Looking forward, Sefalana plans to invest heavily in infrastructure and growth initiatives including a P75 million warehouse in Gaborone North to improve supply chain efficiency, doubling water production capacity with a P4 million plant expansion and entering a R275 million preference share arrangement in South Africa, with an option to acquire a 30% equity stake in UIH Investments Holdings, potentially contributing 10% of group profits.