One of Namibia’s fast-moving consumer goods (FMCG) chains, Metro Namibia, has generated more than N$2 billion in revenue for the six months ended 30 October 2022, a 23% growth of the prior period.
Metro Namibia, which is owned by diversified Botswana retail giant Sefalana, also reported a 6% increase in profit before tax to N$89.5 million, during the period under review and contributed 34% to Sefalana’s overall revenue of N$6.1 billion.
“This business, however, continues to make a significant contribution to overall Group results each year. We remain the largest FMCG business in Namibia,” Sefalana said in its latest financials.
Despite the growth, the retailer noted the negative impact of the Namibian economy on its local sales.
“We have noted significant pressure on margins largely a result of the competitive pressure in the country and the unemployment rates that remain high. Disposable income is now being directed towards necessity products and away from luxury, higher margin products.”
The retail giant said although it continues to scout for more retail locations to grow its Namibia retail network from the current 23 outlets, it will take a cautious approach, given the country’s current economic environment.
This, according to the company, will also include a model review for the business.
“We continue to look for new suitable locations for store openings as we have now met our medium-term target of 20 stores. Expansion will be cautious given the current economic environment. Other revenue streams and models are being evaluated and will be introduced in due course. At the start of the year, we had 22 stores across the country. During the period one new liquor store was opened in Okuryangava increasing our representation in that area. Our operations in Namibia continue to grow despite indications of stress in the economy.”
Sefalana, which operates 118 stores in Botswana and is listed on the Botswana Stock Exchange, saw a profit before tax of N$265.1 million, a 28% increase from the previous period.
The company’s net asset position grew from N$2.7 billion in April 2022 to N$3 billion in October 2022.
Sefalana operates primarily in the FMCG sector in various countries including Namibia, Lesotho, South Africa, and Australia.
