We have extracted the financial summary from the interim report of Sefalana Holdings Company Limited, listed on the Botswana Stock Exchange under the share code SEFALA.bw. Sefalana Holdings is a large retail operating in the discount and retail circulation of quick moving customer products in Botswana, Zambia, Lesotho and Namibia.

The following is an excerpt from the interim report;

Financial results of the Group – overview
At the April 2018 year end, we reported to our Shareholders, our best ever results to date. We had focused on cost saving initiatives and identified ways in which to extract additional value from our existing businesses. We had also benefited from the first tranche of returns from our South African investment following over 18 months of refining our model of investment. Our focus for the ensuing six months ended 31 October 2018 remained very much aligned with this approach.

We further progressed overhead cost saving programs and improved processes and structures within the Group, streamlining operations so as to maximise return from these businesses.It is through this perseverance and focus on value creation, that we have, despite continued strain in the economic environment, been able to deliver once again, results we are very proud of.

Overall the Group exceeded the P2.5 billion turnover threshold, and generated a profit before tax of P103.6 million for the six months ended 31 October 2018 representing a 25% increase compared to the comparative period to 31 October 2017 (“the prior period”).As Botswana’s first Fast Moving Consumer Goods (FMCG) business, we believe that over the last four decades, we have built a very strong brand of trust and transparency for our Shareholders, customers, suppliers, Government and other stakeholders.

Financial highlights

For the six months to 31 October 2018, the Group’s:
Revenue was P2.6 billion – up 13% on prior period;
Gross profit was P152.5 million – up 9% on prior period;
Earnings before interest, tax and amortization (“EBITA”) was P85.5 million, up 21% on prior period;
Profit before tax was P103.6 million – up 25% on the prior period; and
Interim dividend of 10 thebe per share to be paid to our Shareholders.

Prospects
At our recent Group Strategy workshop, our Board reaffirmed our intention to continue to focus on our core segment of FMCG and supporting businesses. This has worked well for us and we anticipate further growth in this area. In particular we look forward to expanding on our manufacturing business with fruit juice and bottled water.

We look forward to launching our latest division of Sefalana Catering in the next few months. This division will focus on serving the large hospitality industry with frozen foods in wholesale size units.We will continue to pursue process improvements and efficiencies to maximise returns from our existing businesses and look at providing our customer base with a wider product and service offering.

We will also explore and evaluate other neighbouring regions as part of our Regional expansion drive. This will however, continue to be a cautious and measured approach. Our focus on CSR will also continue with the overall objective of improving the lives of Batswana.