Table of Contents
Despite a double-digit percent increase in revenue, Sefalana Holding Company, a leading retail conglomerate led by Botswana retail tycoon Chandra Chauhan, reported a single-digit increase in earnings at the end of its 2022 fiscal year, which ended on April 24.
Profit from the group’s operations increased marginally by 1.93 percent from BWP216.9 million ($16.5 million) in 2021 to BWP221.07 million ($16.83 million) at the end of its 2022 fiscal year, according to figures contained in its recently released earnings figures.
The (marginal) increase in earnings was primarily driven by a 19.5-percent increase in Sefalana’s revenue from BWP6.29 billion ($478.7 million) in 2021 to BWP7.52 billion ($572.3 million) in 2022 due to higher customer demands, as well as the group’s efforts at diversification, which delivered impressive gains during the period under review.
The increase in the cost of the group’s merchandise, combined with higher operating expenses and a higher income tax expense of BWP112.74 million ($8.58 million), pushed earnings growth to less than two percent.
The group also disclosed that it reported one of its best results to date, and that over the past five years it has generated more than BWP1 billion ($76.1 million) in profits for shareholders, largely through its expansion drive, with nearly half of these earnings distributed as dividends.
The group’s total assets increased from BWP3.25 billion ($247.35 million) in 2021 to BWP3.68 billion ($280 million), while retained earnings increased from BWP1.093 billion ($83 million) to BWP1.213 billion ($92.1 million).
Sefalana Group, which began in 1974 with six wholesale stores and a maize mill, has expanded significantly over the past 48 years, venturing into new industries and territories. It operates a retail supermarket, convenience store, cash and carry, hypermarket, and liquor store chain.
Chauhan, Sefalana’s group managing director for more than seven years, owns a 5.53-percent equity stake in the company, valued at BWP132 million ($10.04 million) at the time of writing.
Under his leadership, the group has survived a global pandemic, which has presented a unique set of challenges and opportunities despite lockdowns and restrictions on the sale of certain commodities.
He was responsible for turning around and restructuring Sefalana and has seen its market capitalization increase from BWP64 million ($4.87 million) in 2004 to its current capitalization of just over BWP2.4 billion ($182.7 million).
