- Increased sales ascribed to lifting of alcohol bans and normalisation of operating hours
- Results assume pacific tone about successful govt vaccination programme
Sechaba Brewery Holdings Limited (SBHL), which has a 49.9 percent shareholding in Kgalagadi Breweries (Pty) Ltd (KBL) and 49.9 percent in Coca Cola Beverages (Botswana) (Pty) Ltd (CCBB), says the main drivers for its positive performance were the increase in sales volumes for both CCBB and KBL.
Year-on-year profit before tax had a positive variance driven by revenue growth at 22.7 percent for CCBB and 14.3 percent for KBL, which resulted in Sechaba achieving a 29 percent overall increase in profit after tax when compared to the previous year’s results.
According to the brewery in its financial results for the year ended 31 December 2021, the Government of Botswana’s economic response plan and the vaccination rollout programme have contributed positively to the improvement in its associates’ performance as more than 80 percent of the population eligible for vaccination was vaccinated. The lifting of the alcohol bans on sale of alcohol and the normalisation of operating hours of restaurants and related outlets that trade in the products of the company have also aided business recovery and enhanced performance.
“The associates continue to contribute to efforts in supporting the health system’s ability to deal with COVID-19 and protecting the economy. Despite the current unpredictability and the economic uncertainty of the ongoing pandemic, the beverage industry is showing real pockets of resilience. The company believes that there is sufficient liquidity to sustain operations for the next 12 months and beyond,” Sechaba stated. In volume performance, SBHL says overall volumes increased by 11 percent during the year ended 31 December 2021, with KBL volumes increasing by 5 percent whilst CCBB volumes increased by 18 percent.
SBHL’s results directly relate to those of its two associates – KBL and CCBB. KBL is a company registered in Botswana involved in the manufacturing, import, distribution and marketing of a portfolio of clear beers, alcoholic fruit beverages and traditional beers. CCBB is a company registered in Botswana involved in the manufacturing, import, distribution and marketing of a portfolio of soft drinks, purified water and other non-alcoholic beverages.