Botswana's Sefalana declares record dividend after 10% profit jump

AFRICAN STOCKS AND FINANCEAugust 12, 2024 at 10:15 PM UTC

TLDR

Sefalana declares record-high full-year dividend of 65 thebe amidst challenges, reports 10% increase in pre-tax profits to P443 million.
The majority citizen-owned group achieves impressive revenue of P9.7 billion despite margin pressures and competition in the market.
Sefalana's resilient performance showcases growth despite facing challenges like supply chain issues and increased competition.

Sefalana, a leading retail, wholesale, and manufacturing group, declared its highest full-year dividend to date of 65 thebe, reflecting a resilient performance despite various challenges.

In its latest financial period, the group reported pre-tax profits of P443 million ($33 million), marking a 10% increase. This growth was achieved despite facing pressures on margins, increased competition, and supply chain issues.

The majority citizen-owned company, which started with just six stores and a maize mill in 1974, posted topline revenues of P9.7 billion. However, the group experienced margin pressures, particularly in its wholesale and retail divisions, highlighting the challenging market conditions it faced.

Key Takeaways

Retail and wholesale activities in Botswana, Zambia, Namibia, and Lesotho showed strength during the period, with Sefalana expanding its footprint by adding more stores. The company's directors emphasized their commitment to exploring further opportunities for expansion to sustain consistent growth. Several new projects are being pursued to support an expanded, long-term, sustainable profit stream. Reflecting its solid performance, Sefalana declared the highest dividend payout in its history.

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