Sefalana posted record revenue of P12.13 billion in 2026, but weaker margins and higher costs drove profit after tax down 45 percent to P234 million.
BONGANI MALUNGA
Sefalana Holding Company recorded the highest revenue in its 52-year history during the 2026 financial year, but the milestone was overshadowed by a 45 percent decline in profit after tax.
The diversified retailer generated P12.13 billion in revenue for the 52 weeks ended April 26, 2026, up nine percent from P11.17 billion in the previous financial year, according to its 2026 Integrated Annual Report published on the Botswana Stock Exchange on September 24.
Profit for the year fell to P234 million from P426 million, while profit before tax declined 40 percent from P550 million to P331 million, as previously confirmed in July.
MARGINS SHRINK
Earnings before interest, tax and amortisation (EBITA) fell 39 percent to P336 million from P555 million. Gross profit contracted 12 percent to P701 million from P793 million despite higher sales, while the gross profit margin narrowed to 5.8 percent from 7.1 percent.
Administrative expenses rose to P408 million from P394 million and finance costs increased to P53 million from P38 million. Investment income improved to P57 million from P47 million.
Sefalana said P118 million of the year-on-year decline in profit before tax was linked to once-off factors. The previous year included a P102 million fair value gain, while the 2026 period absorbed an additional P16 million cost associated with currency movements.
SHAREHOLDERS HIT
Excluding those effects, underlying profit before tax declined 19 percent. Basic earnings per share fell to 93 thebe from 169 thebe, while total dividends per share dropped to 20 thebe from 50 thebe in the previous year.
CASH STRENGTHENS
Despite the earnings decline, total assets grew about 12 percent to P5.33 billion from P4.75 billion and total equity increased to P3.20 billion from P2.83 billion.
Cash and cash equivalents rose to P664 million from P528 million, while net cash generated from operating activities more than doubled to P592 million from P280 million. Total comprehensive income increased six percent to P469 million from P443 million, boosted by a P218 million foreign currency translation gain.