- Group’s revenue soars to P11.2 billion amid regional headwinds
TLOTLO KEBINAKGABO
Sefalana Group has reported its strongest performance in its 51-year history, driven by expansion and diversification despite a challenging trading environment across the region.
According to Managing Director Chandra Chauhan in the Group’s recently released 2025 Integrated Report, revenue reached P11.2 billion, which is a 15 percent increase from the previous year and the highest on record.
“Our consistent year-on-year growth is driven by strategic diversification across sectors and geographies, a strong focus on innovation, and continued investment in business development, all of which have contributed to enhanced value for our shareholders,” he said.
12 new stores
Chauhan said the Group expanded its footprint by opening 12 new stores during the year, with six more expected to open in the coming year.
He noted that this expansion has strengthened Sefalana’s market presence and competitiveness across its operating territories.
However, Chauhan said inspite of the growth, the trading environment remained difficult due to supply chain disruptions, margin pressures, and rising raw material costs.
SA manufacturing down
“Manufacturing volumes from South Africa have declined in recent times while raw material costs have increased, impacted by global economic volatility and heightened geopolitical tensions,” he said.
The report highlighted inflationary pressures as a key factor reshaping consumer behaviour.
Consumers are reportedly shopping more often, prioritising essential and value-based products, with moderate increases in basket sizes but at lower blended margins.
Profit margins hold steady
Despite intensified competition, the Group’s gross profit margin remained stable at 7.1 percent, while absolute gross profit rose by 14 percent to P792 million. Chauhan said the results “reaffirm the resilience of our operational model” amid regional inflation ranging between 2 and 5 percent.