Sales volumes up by 34 percent
For the half-year (H1) that ended 30 June 2022, profit after tax for the country’s largest producer of clear beer, Kgalagadi Breweries Limited (KBL), increased by 56 percent (P66.2 million) from P119.3 million recorded on 30 June 2022 to P185.5 million in the period under review, Sechaba Holdings Limited’s (SBHL) H1 2022 financial results show.
Sechaba has 49.9 percent shareholding in KBL and 49.9 percent in Coca Cola Beverages Botswana Limited (CCBB).
According to the company, KBL’s increase in profit after tax comes as a result of increased sales volume in comparison to financial year 2021 which was impacted by alcohol bans, hence performance was lower than pre-COVID -19 trends.
KBL volumes increased by 34 percent (from 545.1 hectoliters (HL) to 732.1 HL).
KBL is focused on the manufacturing, import, distribution and marketing of a portfolio of clear beer, alcoholic fruit beverages and traditional beers.
On the other hand, KBL’s sister company, CCBB, had a 62 percent reduction in profit after tax mainly due to higher cost of sales as a result of increased commodity prices. This is the company who sales volumes increased by 2 percent as compared to that of the prior year (from *504.4 HL to 515.8 HL).
CCBB is involved in the production, import and distribution of a range of soft drinks, purified water and other non-alcoholic beverages.
Sechaba noted in the results that it anticipates its results and those of its associates to continue improving with the enabling environment and eventually surpass pre-COVID-19 operating standards.
“Working to maximise shareholder value, SBHL and its associates continue to adapt to highly unpredictable, complicated, and turbulent business scenarios,” Sechaba said in the results.
The company noted that building a resilient recovery will be its associates’ key focus area as they implement breakthrough sustainable strategies, manage enterprise agility and strengthen internal capabilities.
“Together with its associates SBHL will build lasting external networks and partnerships,” Sechaba said. “The company will continuously monitor the market and remain focused on rapid innovation in the post-COVID 19 era.”