Botswana: Sechaba Brewery Holdings records 7.8% increase in profit for FY to March 31

Sechaba Brewery Holdings has recorded a P202 million profit for the year, which is a 7.8 percent increase from the P187 million registered in the prior year, according to the group’s financial results for the year ended March 31, 2016.

The group attributed the increase to a combination of volume growth from clear beer, alcoholic fruit beverages, sparkling soft drinks categories, selective pricing, improved brand, pack mix and focus on production and distribution efficiencies.

According to KBL managing director, Johan de Kok, clear beer, alcoholic fruit beverages and sparkling soft drinks showed growth while traditional beer and non-alcoholic beverages category declined.

BSE-listed Sechaba owns 60% of KBL with the remainder is held by global brewing giants, SABMiller.

“Traditional beer and alcoholic beverages declined due to water and power shortages and the continuing impact of the traditional beer regulations,” said the group MD.

According to KBL, the opaque beer portfolio has suffered sustained challenges in its trading environment as a result of the traditional beer regulations that were implemented in July 2012, which effectively banned the sale of traditional beer in residential areas.

Previously these presented approximately 80% of the trading channels for KBL opaque beer division’s traditional heritage product, Chibuku.

In a period of seven months, the harsh trading environment forced KBL to close down production activities at its opaque brewery operations in Selebi-Phikwe and Lobatse impacting on 142 jobs.

This followed the closure of the KBL Palapye Brewery operations in 2013.

Total volumes for the year ended 0.2 percent below prior year recording 2,212.6 hl compared to 2,217.8 hl recorded the previous year.

17 June, 2016