Botswana’s Sefalana Group has announced financial results for the year ended 30 April 2018 and called them “the best ever in the history of Sefalana”.

Sefalana was founded in 1974 as a chain of 6 wholesale stores and a maize mill and was the first company ever to be listed on the Botswana Stock Exchange. It now operates 55 hypermarkets, supermarkets and cash & carry stores in Botswana, 14 in Namibia and opened its first store in Lesotho in 2016.

The group recorded profit before tax of US$21.6m, which is a 34% increase on the profit margin during the same period last year. Group revenue is US$448m. Sefalana Cash & Carry in Botswana makes up 54% of revenue, with the stores in Namibia, trading under the name Metro Namibia, making up a further 32% and Sefalana Lesotho contributing 8%.

Profitability in wholesale and retail operations has fallen considerably in recent and years. Sefalana Managing Director Chandra Chauhan has said that Sefalana’s diversification into other markets “has been able to cushion the group” from challenges faced in the Botswanan economy.

After opening its first store in Namibia in 2014, Sefalana is now seeing profits in that market, saying “Namibian operations continue to grow from strength to strength”. Metro Namibia contributes significantly to Sefalana’s total annual financial results. This year’s share of 32% of total revenue is an increase from last year’s 31%, although its contribution to profit before tax has fallen from 26% to 23%. Rather than opening new stores, Sefalana’s strategy in Namibia is to concentrate on refurbishing and expanding the existing chain of stores.

Trading in Lesotho made a loss last year but this year achieved turnover of US$36m and the group says it has built a strong presence in the market in the last year and a half.

Sefalana’s plans going forward are to expand into South Africa, continuing its diversification drive while continuing to focus on its core segments.