SEFALANA WARNS SHAREHOLDERS OF LOWER PROFITS AS DIAMOND SLUMP AND PULA DROP WEIGH ON EARNINGS

Article By: Gilbert Manenye

Listed retailer Sefalana, has warned shareholders to expect a decline in profitability for its interim period, citing weakening economic conditions and the devaluation of the pula in July 2025.

In its cautionary announcement, the retail group said profit before tax for the period ended 26 October 2025, is expected to fall by up to P26 million from the P219 million recorded in the corresponding period in 2024, 

Sefalana said the performance was driven by reduced economic activity linked to declining diamond sales, which have constrained liquidity in the economy, as well as the impact of the 7.5% pula devaluation announced by the government in July 2025.

The results comes after Sefalana had previously warned that the pula devaluation increased replacement costs, after suppliers implemented price hikes of between 8% and 15%, which added further pressure on margins and consumer spending power.