Sefalana : UNAUDITED GROUP FINANCIAL RESUSLTS 27 WEEK PERIOD ENDED 30 OCTOBER 2022 AND DIVIDEND ANNOUNCEMENT

Revenue	Gross	Profit	EBITA
29%	31%	35%

Interim dividend

PBTEPSper share (thebe)

28% 59% 12t

UNAUDITED GROUP

FINANCIAL

RESULTS

27 week period ended 30 October 2022 & dividend announcement

ABRIDGED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
	Unaudited	Unaudited	Audited
	27 week ended	27 week ended 52 week ended
	30 October	31 October	24 April
	2022	2021	2022
	P'm	P'm	P'm
Revenue	4 500.8	3 487.7	7 519.5
Cost of sales	(4 188.4)	(3 249.5)	(6 996.4)
Gross profit	312.4	238.2	523.1
Other income and gains	21.3	13.0	51.5
Administrative expenses	(136.8)	(105.8)	(251.6)
Earnings before interest, tax and amortisation (EBITA)	196.9	145.4	323.0
Amortisation	(3.3)	(3.0)	(7.1)
Investment income	17.5	25.5	54.2
Finance costs	(12.3)	(12.5)	(21.9)
Profit before share of results of associates	198.8	155.4	348.2
Share of results of associates	(3.6)	(2.8)	(14.4)
Profit before tax	195.2	152.6	333.8
Income tax expense	(53.2)	(63.5)	(112.7)
PROFIT FOR THE PERIOD	142.0	89.1	221.1
Other comprehensive income:
Items that will not be reclassified to profit or loss
Net gain on revaluation of land and buildings			19.2
Gross gain on revaluation of land and buildings			25.5
Income tax on gain on revaluation of land and buildings			(6.3)
Items that may be subsequently reclassified to profit or loss
Currency translation differences	(12.9)	(1.9)	27.4
Other comprehensive (loss) / income for the period (net of tax)	(12.9)	(1.9)	46.6
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	129.1	87.2	267.7
PROFIT FOR THE PERIOD ATTRIBUTABLE TO:
Owners of the parent	141.6	89.0	219.6
Non - controlling interests	0.4	0.1	1.5
TOTAL PROFIT FOR THE PERIOD	142.0	89.1	221.1
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Owners of the parent	128.7	87.1	266.2
Non - controlling interests	0.4	0.1	1.5
TOTAL COMPREHENSIVE INCOME	129.1	87.2	267.7
Number of shares in issue at beginning and end of the period	250 726 709	250 726 709	250 726 709
Dividends per share (thebe) - ordinary - interim	12.00	10.00	10.00
Dividends per share (thebe) - ordinary - final	n/a	n/a	30.00
Basic earnings per share (thebe)	56.48	35.54	87.59
ABRIDGED CONSOLIDATED STATEMENT OF CASH FLOWS
	Unaudited	Unaudited	Audited
	27 week ended	27 week ended 52 week ended
	30 October	31 October	24 April
	2022	2021	2022
	P'm	P'm	P'm
Net cash generated from operating activities	41.8	102.9	284.9
Net cash flows generated by / (utilised in) investment activities	148.0	(58.8)	(70.5)
Dividends paid	(75.2)	(75.2)	(100.3)
Net cash flows utilised in other financing activities	(32.5)	(35.5)	(61.7)
Net movement in cash and cash equivalents	82.1	(66.6)	52.4
Cash and cash equivalents at beginning of period	530.6	474.7	474.7
Effect of exchange rate on cash and cash equivalents	(3.6)	(0.4)	3.5
Cash and cash equivalents at end of period	609.1	407.7	530.6
Represented by:
Cash and cash equivalents	664.1	411.6	575.2
Bank overdrafts	(55.0)	(3.9)	(44.6)
Cash and cash equivalents at end of period	609.1	407.7	530.6

ABRIDGED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
	Unaudited	Unaudited	Audited
	30 October	31 October	24 April
	2022	2021	2022
	P'm	P'm	P'm
ASSETS
NON - CURRENT ASSETS
Property, plant and equipment	870.8	795.6	857.4
Right of use assets	204.2	173.9	229.7
Investment property	234.5	227.3	230.0
Intangible assets	117.2	124.4	123.4
Investment in preference shares		187.3
Investment in associates	61.2	72.6	63.7
Deferred lease assets	4.9	5.0	4.7
Deferred tax assets	32.4	29.8	29.7
Trade and other receivables	7.6	8.2	6.3
Total non - current assets	1 532.8	1 624.1	1 544.9
CURRENT ASSETS
Inventories	1 217.8	944.0	1 007.4
Trade and other receivables	373.2	305.2	327.8
Investment in preference shares			190.7
Current tax assets	24.6	28.6	2.3
Cash and cash equivalents	664.1	411.6	575.2
Total current assets	2 279.7	1 689.4	2 103.4
Asset classified as held for sale		23.9	34.8
TOTAL ASSETS	3 812.5	3 337.4	3 683.1
EQUITY AND LIABILITIES
EQUITY
Stated capital	686.4	686.4	686.4
Other reserves	244.8	209.1	257.7
Retained earnings	1 279.4	1 107.3	1 213.0
Equity attributable to owners of the parent	2 210.6	2 002.8	2 157.1
Non - controlling interests	16.9	15.2	16.5
Total equity	2 227.5	2 018.0	2 173.6
NON - CURRENT LIABILITIES
Lease liabilities	170.5	140.4	160.8
Loans and borrowings	105.1	106.6	105.8
Deferred tax liabilities	116.2	108.9	116.8
Total non - current liabilities	391.8	355.9	383.4
CURRENT LIABILITIES
Trade and other payables	963.2	806.6	862.3
Lease liabilities	58.4	57.0	93.3
Loans and borrowings	1.6	1.8	1.7
Contract liabilities	16.9	15.7	15.0
Current tax liabilities	37.3	30.6	33.8
Bank overdrafts	55.0	3.9	44.6
Accruals	60.8	47.9	75.4
Total current liabilities	1 193.2	963.5	1 126.1
Total liabilities	1 585.0	1 319.4	1 509.5
TOTAL EQUITY AND LIABILITIES	3 812.5	3 337.4	3 683.1

COMMENTARY

Basis of preparation and accounting policies

The unaudited abridged consolidated financial results of Sefalana Holding Company Limited and its subsidiaries ("Sefalana" / the "Group") are extracted from the interim Group financial information that has been prepared in accordance with International Financial Reporting Standards ("IFRS"), under the historical cost convention except for the revaluation of certain non - current assets being land and buildings, investment in properties and preference shares, which are carried at fair value.

The accounting policies applied in the preparation of the unaudited financial information for the 27-week period ended 30 October 2022 (the "period" / the "half year"), are consistent with those applied in the preparation of the audited financial statements for the 52-week period ended 24 April 2022.

Financial results of the Group - key factors to highlight

Over recent months, we have noted a positive level of recovery from the effects of the Pandemic, which has been the centre of all trading activities and decisions across the Group for almost 3 years. During that period, our teams have worked tirelessly to ensure we remain resilient and respond quickly and appropriately to the continuously changing environment.

Each business sector, and each geographical region, has brought with it unique circumstances and challenges. Due to the complex nature of the sectors in which we operate, navigating around those obstacles has not been easy; but we have managed to do so, successfully. With challenges, come opportunities, and there are a number of new projects we are pursuing, to support a long-term sustainable profit stream for the Group. These new opportunities come with excitement and determination to enhance shareholder value. We look forward to providing further announcements in respect of these projects as soon as we are able to do so.

Our greatest focus has for some time now, been on the core Fast Moving Consumer Goods (FMCG) businesses where we have placed considerable efforts to enhance margins and relative contribution to Group results. Margin pressure continues especially during inflationary times where disposable income is under strain. We have noted this trend worldwide. Through efficient management of stock and bulk procurement we are pleased to report that our overall margins have been maintained at previous levels.

Our manufacturing operations which support the FMCG businesses are also key focus areas for us. These have performed well during the period despite certain impediments beyond our control.

It is within this context, that we are pleased and proud to report to you, our best half year results to date. This is on the back of reporting our best (in our 48-year history) full year results to 24 April 2022. Our diversification across sectors and territories has helped enable us to consistently deliver better results year on year.

For the period under review, the Group generated a profit before tax ("PBT") of P195 million, up 28% on the prior period. The effective tax rate for the period of 27% is significantly lower than that of the prior period which was 42% with the absorption of the accelerated withholding tax paid on dividends declared by subsidiary companies to Sefalana Holding Company Limited, prior to the increase in Botswana withholding tax rates on 1 July 2021, which results in the majority of our future dividends to shareholders being free of tax.

Our net asset position grew from P2.0 billion at April 2022 to P2.2 billion at October 2022, and this is after the P75.2 million final dividend paid to shareholders in 2022. The market capitalisation of the Group at 30 October 2022 amounted to P2.4 billion, placing Sefalana as the largest in the Retail and Wholesale sector on the Botswana Stock Exchange.

Our share price at P9.58 has not seen significant movement during the period, predominantly because of the illiquid nature of our stock, where our large institutional shareholders opt to hold on to their holdings in Sefalana despite an overweight position. Our consistent dividend policy of paying out approximately 50% of earnings in the form of dividends has provided a regular and sustained income stream for our shareholders for many years. Third party valuations have suggested a share price value in excess of P12.50 illustrating an upside capital growth potential.

During the period under review, we invested significantly in inventory to ensure shortages were minimized. This has enabled us to avoid stock-outs and provide our customer base with a consistent product offering. There have been numerous price increases from suppliers in South Africa over the last 18 months, and where possible we have increased procurement to mitigate these increases. In doing so, we have been able to delay price increases to our end consumer in many instances.

Our cash position at the end of October 2022 is good and sufficient to meet all our current liabilities with a sensible and prudent retention. Overall, our working capital position remains strong and puts us in good stead as we approach the year end.

We are pleased to report that with this continued level of growth, our Group has created employment for an additional 493 staff during the period taking our total number of staff to 6,112. We look to further employment creation in the second half of the year. We continue to focus our employment on citizens in all our areas of operation and report under 1% non-citizen employment.

Financial highlights

For the 27-week period to 30 October 2022, the Group's:

Revenue was P4.5 billion - up 29% on prior period; Gross profit was P312 million - up 31% on prior period; Earnings before interest, tax, and amortisation ("EBITA") was P197 million, up 35% on prior period;

Profit before tax was P195 million - up 28% on the prior period;

Earnings per share was 56.48 thebe - up 59% on prior period; and

Interim dividend of 12 thebe per share to be paid to our Shareholders, up 20% on prior period.

Segmental Reporting

The Group's business and geographical segments are reported separately. Intersegment transactions are eliminated, and costs of shared services are accounted for in a separate ("Intersegment or Unallocated") segment. All transactions between segments are at arm's length.

Review of operations

Botswana Business units - 62% of Group PBT

Overall Botswana business units have generated P120 million of PBT for the period, compared to P75 million in the prior period. The most significant growth has been in the Trading consumer goods sector, with an impressive turnaround in both the Wholesale and Retail business.

Trading - consumer goods

The Botswana FMCG businesses had been adversely affected for much of the last 2 years by the trading restrictions that had been in place as a result of the Covid-19 protocols. These restrictions have largely been lifted and consequently there has been a solid recovery of performance by this segment. There remain several import restrictions on confectionary, fruit, and vegetables, but we have managed to mitigate the downside impact of this through diversification into wider product and service offerings. Wherever possible we support the local producers with favourable trading terms.

Consumers are returning to more frequent visits to stores in the current period. The consumer is still somewhat cautious and tends to focus more on value packs, necessities, and private label products, rather than luxuries. The desire for a one-stop shop is very much apparent and we have responded accordingly.

Due to the changes in legislation relating to liquor licensing, the business now classifies and monitors liquor outlets as separate stores. Consequently, at the end of the period, the Botswana FMCG business consisted of 4 hyper stores ("Sefalana Hyper"), 25 cash and carry stores ("Sefalana Cash & Carry"), 31 supermarket retail stores ("Sefalana Shopper"), 53 liquor stores ("Sefalana Liquor"), 4 convenience stores ("Sefalana Quick"), and one catering outlet ("Sefalana Catering"), giving the Group a total of 118 stores in Botswana.

As part of our annual birthday promotion, our Cash & Carry business for the past 4 years rolled out its empowerment program and gave away a total of 144 mobile kiosks to Batswana to start their own businesses. This year, to reach a wider number of winners, we introduced our scratch card promotion where our customers stood a chance to win cash prizes. The total cost of this promotion to the Wholesale business was P3 million.

Our Retail birthday promotion once again gave away P2 million in the form of cash and mobile phone prizes. This generated a lot of excitement in the market meeting the needs of our retail customers who prefer cash rather than prizes in kind, during these challenging inflationary times.

Sefalana Cash & Carry Limited contributed 54% and 40% of the Group's revenue and PBT for the reporting period, respectively. Revenue amounted to just over P2.4 billion, which is an impressive 35% up on the prior period.

Overall, a very pleasing performance by this division which this year, reports its best half year results to date.

Trading - others

This segment which consists of Commercial Motors (Pty) Limited ("CML") and Mechanised Farming (Pty) Limited ("MFL") contributed 1.3% and 1.5% to Group turnover and PBT, respectively. This is a relatively small Group segment in line with our focus on the core business of FMCG.

CML historically relied on tender business, and over recent years has been focusing on growing its private sales due to a general decline in tender activity. Overall performance has improved following the move of the dealership to the new site last year, where greater visibility has helped promote our 3 brands.

MFL focuses almost exclusively on the supply of components to Botswana Railways. This business no longer sells to walk-in customers and is not a primary focus for the Group.

Manufacturing

Foods Botswana (Pty) Limited ("FB") contributed 3% and 8% to Group turnover and PBT for the period respectively. The profitability of this business is largely dependent on the timing of orders placed by Government in respect of the various feeding schemes, and also on availability of raw materials.

Milling Division

During this period FB manufactured and supplied on the Government tender for only the first 3 months. Since then, there has not been a further tender award. During this 5-month waiting period, we have tendered to supply for a 4-month interim contract and the next 24-month contract. In January 2023 we were awarded the 4-month tender. The outcome of the 24-month tender evaluation is still ongoing, but we are hopeful that we will be awarded a significant portion of the tender in the coming months.

In the meantime, we continue to focus on the manufacture and supply of branded products to utilise factory capacity and to avoid unemployment. Growth in this area is positive and showing an upward trend. The Sechaba range of products has increasingly become a popular household name and a preferred choice for many regions across the country.

In November 2022 we employed just over 60 additional staff to create an internal sales and merchandising team to help promote and deliver the sale of our branded products across the country. This team will also be responsible for the portfolio of Beverages products. We anticipate growth in this area, to reduce the level of dependence on tenders.

UNAUDITED GROUP

FINANCIAL RESULTS

27 week period ended

30 October 2022

& dividend announcement

Catering

From a raw materials perspective, we have procured adequate grain to fulfil any volumes that Government might require from us from both the interim and the 24-month tenders.

Beverages Division

This division is heavily dependent on the manufacture and supply to Government for the children's feeding scheme. In March 2019 we were awarded the 24-month supply tender which was successfully completed in June 2021. This was the last tender before decentralization took place. Government tenders now require separate bids to be submitted for each region. Individual councils provide orders based on the number of schools in their region.

We are pleased to report that the majority of the current tenders have been awarded to us, most of which are for a 12 or 24 month period. There have however, been delays in the award of some regional tenders due to additional administration hurdles at the councils. Post decentralisation quantities have unfortunately almost halved on a month-to-month basis compared to that of the previous tenders. All orders received during this period were successfully completed and delivered.

Raw material milk shortages in the Region over the last 12 months due to repeated outbreaks of Foot and Mouth Disease in South Africa, have resulted in a slowdown in production volumes and as a result we have not been able to supply the Trade consistently with the required volumes. Having explored various options, we have now put in place measures for the importation of pasteurised milk into Botswana. This is more expensive than raw milk but allows for a regular supply. This does result in a slight erosion of margins.

Our focus continues on building the Delta Fresh brand. Delta Fresh is now available throughout Botswana in most retailers and is increasing in market share and popularity. A new refreshed packaging of this brand was launched in November 2022 which has been well received in the market. We have also made a change to the 500ml pack into a base format which is the preferred package type for Botswana.

Properties

Botswana property portfolio

Our property portfolio held in Botswana performed well, contributing 1% and 12% to Group revenue and PBT respectively. Almost all properties are tenanted, and leases are in place for periods between 2 and 5 years.

During the prior year, the sectional title sale of the Italtile property in Setlhoa Gaborone took place for a consideration of P35m. The necessary regulatory approvals have been received and the final administrative steps were completed during the half year. This transaction has now been completed.

In early 2022, we commenced the construction of a 3,000 sqm warehouse at Foods Botswana Beverages to accommodate growth and diversification. This development is now completed and required an outlay of P19 million. Later in this report we provide an update on our water plant which will utilize some of the new warehouse storage space.

The KSI property development of 5,000 sqm of warehouse space remains fully let with on-going demand for the sites. With the closure of the KSI soap plant, the factory property will be upgraded to increase the size and quality of the lettable space. This will further enhance the return from that site.

We are in the process of developing plans for certain of our other properties, including the old Sefcash Head Office and Commercial Motors site in Broadhurst. These properties will be converted to warehousing space to support our FMCG businesses.

Our P100m loan taken out for the purpose of developing property begins its five-year repayment period in 2025.

Regional operations and foreign exchange exposure

Our diversification into neighbouring countries over the last 7 years has helped us maintain the Group's overall performance. Each economy has presented its own opportunities and put forward its unique challenges. Our model of business has been tailored to each economy accordingly.

Diversification into other regions brings with it foreign exchange exposure. For this period, we have recorded a retranslation loss of P12.9 million largely relating to the Namibian, South African and Lesotho businesses which are all ZAR denominated which has weakened against the Pula. This compares to a loss of P1.9 million in the comparative period. These currencies constantly fluctuate and therefore the retranslation gains and losses are largely temporary and are recorded in other comprehensive income and losses in line with IFRS.

Since July 2020 we now include exposure to the Australian Dollar. This hard currency exposure often offsets the exposure on the ZAR and serves as a partial hedge. We will continue to invest in harder currencies to protect the overall Pula return for our shareholders.

Metro (Sefalana) Namibia

Metro Namibia contributed 34% of revenue and PBT for the year. Turnover amounted to just over P1.5 billion, a growth of 23% on the prior period. PBT amounted to P66 million, up 6% on the prior period. Our operations in Namibia continue to grow despite indications of stress in the economy. 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

ABRIDGED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

							Equity attributable to owners of the parent
					Stated	Reserves		Retained	Total	Non-controlling	Total
					capital			earnings			interests	equity
					P'm	P'm		P'm	P'm		P'm	P'm
	At 25 April 2022				686.4	257.7		1 213.0	2 157.1		16.5	2 173.6
	Profit for the period								141.6	141.6		0.4	142.0
	Other comprehensive income for the year:
	Currency translation differences						(12.9)			(12.9)			(12.9)
	Dividend paid - 2022 final								(75.2)	(75.2)			(75.2)
	At 30 October 2022				686.4	244.8		1 279.4	2 210.6		16.9	2 227.5
				Botswana			Zambia	Lesotho	Namibia	South Africa	Australia	Group
	27 week period ended 30 October 2022	Trading						Trading	Trading	Investment	Investment	Inter-
	consumer	Trading				consumer	consumer	in preference		in	segment or
		goods	others Manufacturing	Property	Property	goods	goods	shares		associate	unallocated Consolidated
		P'm	P'm	P'm	P'm	P'm	P'm	P'm	P'm		P'm	P'm	P'm
	Revenue	2,425.4	59.6	142.2	30.6	2.2	412.8	1,519.8				(91.8)	4,500.8
	Cost of sales	(2 293.3)	(49.6)	(108.3)			(391.6)	(1 430.7)				85.1	(4 188.4)
	Gross profit	132.1	10.0	33.9	30.6	2.2	21.2	89.1				(6.7)	312.4
	Other income and gains / (losses)	10.3	2.9	1.6	1.5	(0.2)	1.1	9.5				(5.4)	21.3
	Administrative expenses	(54.9)	(9.8)	(19.5)	(4.7)	(0.6)	(11.0)	(21.0)				(15.3)	(136.8)
	Earnings before interest, tax and amortisation (EBITA)	87.5	3.1	16.0	27.4	1.4	11.3	77.6				(27.4)	196.9
	Amortisation	(0.2)						(1.1)	(2.0)					(3.3)
	Investment income	0.9	0.3	1.4			0.1	2.4	6.3	1.2	4.9	17.5
	Finance costs	(9.4)	(0.4)	(1.9)	(4.6)		(4.5)	(12.3)				20.8	(12.3)
	Profit before share of results of associates	78.8	3.0	15.5	22.8	1.4	5.8	65.7	6.3	1.2	(1.7)	198.8
	Share of results of associates										(3.6)		(3.6)
	Profit before tax (PBT)	78.8	3.0	15.5	22.8	1.4	5.8	65.7	6.3	(2.4)	(1.7)	195.2
			Botswana			Zambia	Lesotho	Namibia	South Africa	Australia	Group
	27 week period ended 31 October 2021	Trading						Trading	Trading	Investment	Investment	Inter-
		consumer	Trading				consumer	consumer	in preference		in	segment
		goods	others Manufacturing	Property	Property	goods	goods	shares		associate	or unallocated Consolidated
		P'm	P'm	P'm	P'm	P'm	P'm	P'm	P'm		P'm	P'm	P'm
	Revenue	1 800.8	39.0	115.9	32.3	1.8	345.8	1 239.9				(87.8)	3 487.7
	Cost of sales	(1 722.2)	(29.9)	(94.4)			(326.2)	(1 163.8)				87.0	(3 249.5)
	Gross profit	78.6	9.1	21.5	32.3	1.8	19.6	76.1				(0.8)	238.2
	Other income and gains / (losses)	6.5	2.1	0.8		(0.7)		9.0	(6.1)			1.4	13.0
	Administrative expenses	(37.4)	(9.2)	(13.5)	(3.9)	(0.5)	(10.5)	(14.8)				(16.0)	(105.8)
	Earnings before interest, tax and amortisation (EBITA)	47.7	2.0	8.8	28.4	0.6	9.1	70.3	(6.1)			(15.4)	145.4
	Amortisation	(0.3)						(0.8)	(1.9)					(3.0)
	Investment income	0.9	0.2	0.7				2.3	18.9	0.9	1.6	25.5
	Finance costs	(8.3)			(0.7)	(4.5)		(4.5)	(9.0)				14.5	(12.5)
	Profit before share of results of associates	40.0	2.2	8.8	23.9	0.6	3.8	61.7	12.8	0.9	0.7	155.4
	Share of results of associates										(2.3)	(0.5)	(2.8)
	Profit before tax (PBT)	40.0	2.2	8.8	23.9	0.6	3.8	61.7	12.8	(1.4)	0.2	152.6
			Botswana			Zambia	Lesotho	Namibia	South Africa	Australia	Group
	52 week period ended 24 April 2022	Trading						Trading	Trading	Investment	Investment	Inter-
	consumer	Trading				consumer	consumer	in preference		in	segment or
		goods	others Manufacturing	Property	Property	goods	goods	shares		associate	unallocated Consolidated
		P'm	P'm	P'm	P'm	P'm	P'm	P'm	P'm		P'm	P'm	P'm
	Revenue	3 951.6	100.6	240.0	61.2	3.8	782.7	2 518.6				(139.0)	7 519.5
	Cost of sales	(3 763.9)	(77.9)	(175.7)			(741.0)	(2 362.4)				124.5	(6 996.4)
	Gross profit	187.7	22.7	64.3	61.2	3.8	41.7	156.2				(14.5)	523.1
	Other income and gains / (losses)	16.3	6.7	1.2	19.3	(9.0)	0.1	21.5	(6.1)			1.5	51.5
	Administrative expenses	(87.9)	(21.5)	(43.7)	(10.6)	(1.0)	(18.8)	(40.9)				(27.2)	(251.6)
	Earnings before interest tax and amortisation (EBITA)	116.1	7.9	21.8	69.9	(6.2)	23.0	136.8	(6.1)			(40.2)	323.0
	Amortisation	(0.6)						(1.6)	(4.9)					(7.1)
	Investment income	2.7	2.4	1.0	0.1		0.1	4.2	37.8	2.0	3.9	54.2
	Finance costs	(17.9)	(0.3)	(1.6)	(9.1)		(8.7)	(18.6)				34.3	(21.9)
	Profit before share of results of associates	100.3	10.0	21.2	60.9	(6.2)	12.8	117.5	31.7	2.0	(2.0)	348.2
	Share of results of associates										(13.9)	(0.5)	(14.4)
	Profit before tax (PBT)	100.3	10.0	21.2	60.9	(6.2)	12.8	117.5	31.7	(11.9)	(2.5)	333.8
	SEGMENT ASSETS AND LIABILITIES
			Botswana			Zambia	Lesotho	Namibia	South Africa	Australia	Group
	30 October 2022	Trading						Trading	Trading	Investment	Investment	Inter-
		consumer	Trading				consumer	consumer	in preference		in	segment or
		goods	others Manufacturing	Property	Property	goods	goods	shares		associate	unallocated Consolidated
		P'm	P'm	P'm	P'm	P'm	P'm	P'm	P'm		P'm	P'm	P'm
	Assets	1 350.1	94.7	321.5	671.4	54.9	252.9	940.1		61.2	65.7	3 812.5
	Liabilities	(998.9)	(39.1)	(149.4)	(215.2)	(1.4)	(220.2)	(647.6)				686.8	(1 585.0)
	31 October 2021
	Assets	1 150.3	73.3	224.3	638.9	40.1	190.7	700.4	187.3	72.6	59.5	3 337.4
	Liabilities	(908.1)	(26.4)	(76.6)	(230.7)	(0.8)	(79.2)	(479.2)				481.6	(1 319.4)
	24 April 2022
	Assets	1 185.6	96.3	226.0	648.1	48.5	230.2	846.9	190.7	63.7	147.1	3 683.1
	Liabilities	(1 012.6)	(42.0)	(66.9)	(209.7)	(0.9)	(200.9)	(713.1)				736.6	(1 509.5)

being directed towards necessity products and away from luxury, higher margin products.

This business however, continues to make a significant contribution to overall Group results each year. We remain the largest FMCG business in Namibia. 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.

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.

Sefalana Lesotho

We have been operating in Lesotho for 7 years and the underlying business is performing well. We have 2 stores located in Maseru and 2 in Maputsoe. We remain the largest FMCG business in the country. We offer the widest range of products and our stores are well positioned to be accessible to the entire country. This business is expected to continue to grow and perform well.

Our discussions are on-going with the Lesotho Revenue Authority for the settlement of VAT due to us. This process has taken longer than anticipated, but we are hopeful for a favourable outcome by the year end. For some time now this matter has meant the business has experienced cash flow constraints and has required Group support to assist during peak times. A settlement will eliminate this pressure and allow us to progress with further growth and employment in this country.

Turnover of P413 million has been achieved for the period, which is 19% up on the prior period, and a contribution of 9% to total Group revenue. A PBT of P5.8m was generated, an increase of 53% on the prior period.

Redemption of Preference shares

During the period, we received our fifth and final tranche of returns from our South African Preference share investment. As previously reported, we carefully monitored the performance of the business over the last 12 months and the likely forward looking economic

trends, and considered several other critical matters, and concluded that it was in the Group's interest not to exercise our conversion option.

We have redeemed our investment of R250 million in full in August 2022. This investment has been one of the Group's highest earning investments to date and we are pleased with our annual 20% return for the 5-year term. Our dividend to earnings ratio over that period has resulted in approximately 50% of this return being paid to our Shareholders in the form of a dividend.

In the spirit of further rewarding our Shareholders, and the receipt of related cash from the redemption, we declared a special once-off dividend of 10 thebe per share which was paid in December 2022.

The remaining funds are being invested in high yielding fixed deposits until the projects we are pursuing, are at a stage where investment will be required. Some of these funds are also being utilized to assist working capital and strategic inventory procurement along with foreign exchange spot purchases to enhance overall margins. This has enabled us to meet customer requirements and build market share, particularly in Botswana where our FMCG business has excelled as a result.

Zambia property

Following the significant increase in supply of warehouse and office space in Lusaka over the last few years, we have experienced a number of changes in our tenant composition. Our current occupancy is around 75% and we actively look for suitable tenants for the remaining space.

Namibia property portfolio

Since our entry into Namibia in 2013, we have aspired to establish a property portfolio similar to the one developed over the years in Botswana. In the previous years, we acquired the new Head office site in Windhoek and some additional property in Keetmanshoop.

We are looking at potential further investments in prime property across Namibia and will make these investments if they are suitable. Further updates will be provided in due course.

Australian investment

Our investment in Australia is doing well and is in line with budget, generating a positive EBITA and cash position. We currently operate 10 stores across Brisbane under the Seasons IGA brand.

As indicated previously, it is the norm in Australia for long leases of 20 years or more to be entered into on properties. In accordance with IFRS 16, this results in a front - loaded interest and depreciation charge in the earlier years of the lease. As a consequence, the positive EBITDA is eroded by the related lease charges. In the latter period of the leases, this is expected to unwind, such that the reported PBT figures for this investment will grow significantly. This is aligned to our intended strategy to re-invest in that business for the first five years before dividends are declared to shareholders. The Group's share of results from this associate for the period amounts to a loss of P3.6 million. We continue to forecast that this associate will break even by the end of the 2024 financial year.

Financial Services - SefRemit

In June 2022 we were pleased to be awarded the necessary licenses by the Bank of Botswana to commence our new Financial Services division. This division provides bureau de change services to our customers along with international electronic money transfers. This new and exciting service offering has been well received by the market in a very short space of time. We currently operate from 7 branches. We anticipate rolling out our kiosks in a further 23 of our stores over the next 18 months.

Prospects

Manufacturing

In December 2022, Foods Botswana purchased a secondhand water and juice bottling plant for a total consideration of P3.9 million. This extension of the Beverages business had been put on hold at the onset of Covid. We are pleased to report that we are now able to proceed with this business and expect production of still, sparkling, and flavoured water to commence in February 2023. Fruit juice will follow later in the year.

We are currently in the process of establishing another potential manufacturing business in Botswana. Details of this potential venture will be provided to Shareholders as soon as are able to do so.

Directors

There were no changes to Directorships during the period.

Dividend

On 23 January 2023, the Board of Directors of Sefalana Holding Company Limited declared an interim gross dividend of 12 (twelve) thebe per ordinary share. This is an increase of 20% on the prior period interim dividend.

The interim dividend will be paid net of applicable withholding taxes as required under the Income Tax Act of Botswana, on or about Wednesday 22 February 2023 to all Shareholders registered in the books of the Company at the last date to register, being close of business on Friday 10 February 2023, with an ex-dividend date of Wednesday 8 February 2023.

By order of the Board

JM Marinelli	CD Chauhan
(Chair)	(Group Managing Director)

27 January 2023

Gaborone, Botswana

Directors: JM Marinelli (Chair), CD Chauhan (Group Managing),	Registered office: Plot 10038,	Transfer Secretaries: Transaction Management	Auditors: Deloitte & Touche,
B Davis, S Swaniker-Tettey, KP Mere, MS Osman (Group Finance)	Corner of Nelson Mandela Drive and Kubu	Services (Pty) Limited, trading as Corpserve Botswana	Plot 64518, Fairground Office Park,
Paula Disberry, Mahube Mpugwa, Gerhard Scheepers	Road, Broadhurst Industrial, Gaborone	Transfer Secretaries, PO Box 1583 AAD, Gaborone	PO Box 778, Gaborone