- Product mix and pricing drive PBT by 21% at KBL
- But PBT down 25.5% at sister company Coca Cola
GAZETTE REPORTER
Kgalagadi Breweries Limited (KBL) has announced a remarkable 21 percent increase in profit after tax for the year ending 31 December 2023.
As a result, majority shareholder Sechaba Holdings Limited (SBHL) saw substantial gains, with KBL’s profit climbing from P449.4 million in the prior period to P545.3 million in the period under review, significantly contributing to SBHL’s improved performance.
According to the Chairman of Sechaba Tabuya Tau and Managing Director Faith Nteta, KBL’s success was primarily driven by factors such as product mix and pricing.
PBT subdued at Coca Cola
“In terms of profit after tax, KBL achieved a 21 percent increase in comparison to the prior year mainly driven by product mix and pricing,” they highlight in Sechaba’s financials for the period under review released recently.
Meanwhile, its sister company, Coca Cola Beverages (Botswana) (CCBB), has reported a 25.5 percent reduction in profit after tax, mainly attributed to increased operational essentials such as maintenance, fuel and utilities.
Overall, SBHL experienced a 22 percent increase in profit after tax compared to the previous year, driven primarily by an increase in sales revenue.
Favourable
“The main drivers for this performance being the increase in sales revenue,” Tau and Nteta state. “Both CCBB and KBL had a positive net revenue growth rate at 12.5 percent for CCBB and 12.3 percent for KBL.”
Looking ahead, Tau and Nteta anticipate that Botswana’s projected favourable economic environment will facilitate improved performance for SBHL and its associates.
“Despite encountering challenges inherent in today’s complex and uncertain business landscape, both SBHL and its associates are committed to adapting and thriving to ensure maximising shareholder value,” they affirm in the financials.
Directly related
Meanwhile, SBHL’s results for the year are directly relating to those of its two associates, KBL and CCBB.
KBL is a company registered in Botswana that specialises in manufacturing, importing, distributing and marketing a diverse portfolio of clear beer, alcoholic fruit beverages, and traditional beers.
CCBB is also a company registered in Botswana but is involved in the manufacturing, import, distribution and marketing of a portfolio of soft drinks, purified water and other non-alcoholic beverages.