- Despite a tougher trading environment that weighed on profits, Botswana’s largest retailer says record revenue, regional expansion and continued investment leave it cautiously optimistic about the future
GAZETTE REPORTER
Sefalana Group says it remains cautiously optimistic about its prospects despite difficult trading conditions across the region, particularly in Botswana, where weaker consumer spending weighed on profitability.
Releasing its audited group financial results for the 52-week period ended 26 April 2026, the company reported record revenue of P12 billion, up 9 percent from the previous year. However, earnings before interest, tax and amortisation (EBITA) declined 39 percent to P336 million, while profit before tax fell 40 percent to P331 million. Excluding once-off items, both EBITA and profit before tax were down 19 percent.
Total comprehensive income rose 6 percent to P469 million, while the board declared a final dividend of 20 thebe per share. Total employment increased by 100 people to 8,272.
Managing Director Chandra Chauhan said the company believes efforts by both the public and private sectors to stimulate economic activity will gradually improve business conditions.
“Encouragingly, both the private and public sectors are actively implementing initiatives aimed at stimulating economic growth and restoring business confidence. We are confident that these collective efforts will, in time, deliver positive outcomes and contribute to a stronger and more resilient economy.”
He added that the group remains committed to supporting Botswana’s economic development through continued investment.
“We believe that our continued investment in people, infrastructure, and communities will position them well to contribute meaningfully to the country’s recovery and long-term prosperity.”
Revenue Record
Chauhan said the P12 billion revenue represented the highest reported turnover in the company’s history, reflecting continued market share gains despite economic headwinds.
“Revenue of P12 billion was our highest reported results with an increase of 9 percent on the prior year. Top line growth is an indication of market share penetration. We are pleased with the level of growth despite the challenges being experienced in the various economies.”
Sefcash Botswana increased turnover by 5 percent, Metro Namibia by 16 percent in pula terms and Sefalana Lesotho by 24 percent in pula terms. Like-for-like sales increased by 2 percent in Namibia and 8 percent in Lesotho, while Botswana recorded a 1 percent decline.
Consumer Pressure
Botswana business units contributed 56 percent of group profit before tax, down from 62 percent in the previous year. Chauhan said Botswana, which typically accounts for around two-thirds of group earnings, generated P186 million in profit before tax compared with P339 million a year earlier.
He said consumers were visiting stores more frequently but spending less during each trip.
“The consumer is still somewhat cautious and tends to focus more on value packs, necessities, and private label products, rather than luxuries.”
The company said this shift continued to put pressure on gross margins, prompting it to expand product ranges and services while prioritising local producers.
By the end of the reporting period, Sefalana operated 146 stores in Botswana, up from 135 a year earlier, including six hyper stores, 22 cash and carry outlets, 38 supermarkets, 66 liquor stores, eight convenience stores and six fuel stations.
Beyond Botswana, Sefalana said its expansion into Lesotho and Namibia over the past 13 years has helped sustain the group’s overall performance. The company also maintains a presence in Australia.