Sefalana achieves record sales amid economic strain

Sefalana Group has reached a significant milestone, posting its highest-ever annual revenue of P12 billion. This achievement underscores the resilience and strength of one of Botswana’s leading retail and wholesale companies. Yet, this record turnover comes amid a challenging economic landscape that has squeezed profitability.

Presenting the group’s audited financial results for the year ending April 26, 2026, Group Managing Director Chandra Chauhan noted that revenue rose by 9 percent compared to the previous year, reflecting sustained demand for the group’s products and services despite the tough economic climate. Still, the impressive revenue figures were accompanied by a sharp decline in earnings. Profit before tax dropped by 40 percent, falling from P550 million the year before to P331 million.

Chauhan attributed this downturn to broader economic difficulties in Botswana, particularly the prolonged slump in the diamond sector. This has tightened liquidity across the economy, pressuring household incomes and consumer spending. The resulting constrained liquidity environment has increased borrowing costs for consumers, reduced disposable income, and altered spending habits.

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“The decline in profitability was driven by several factors,” Chauhan explained, “including reduced manufacturing activity, rising operational costs, increased electricity tariffs, and higher employee expenses.” The electricity tariff hike alone added about P25 million to operating costs, while salary increases of up to 23 percent for lower-paid staff added another P14 million. These wage adjustments were part of efforts to align salaries with the government’s targeted living wage. Despite these challenges, Chauhan expressed pride in delivering a solid profit of P331 million for shareholders, calling the results “evidence of Sefalana’s ability to navigate difficult market conditions.” For Sefalana Cash Botswana, profit margins shrank to 4.0 percent from 5.4 percent the previous year.

The July 2025 currency adjustment dealt a significant blow to the Botswana business, particularly affecting reported gross profit. Profit before tax of P331 million represented a 40 percent decline from the prior year, and earnings per share fell to 93 thebe from 169 thebe. Still, Sefalana’s financial health improved.

Net assets rose to P3.2 billion from P2.8 billion a year earlier. The group’s market capitalization stood at P4 billion as of April 26, 2026, making Sefalana the largest retail and wholesale company listed on the Botswana Stock Exchange. Manufacturing operations remain a strategic focus, though their contribution is modest.

Manufacturing Foods Botswana accounted for 4 percent of group turnover and 1 percent of profit before tax. The division’s performance hinges largely on the timing of government feeding scheme orders and raw material availability. To counter these uncertainties, Sefalana said it is expanding its branded product range to reduce reliance on external factors and boost long-term profitability.

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