E-Malt.com News article: Botswana: SABMiller’s Sechaba Brewery increases turnover by 33% over the six months ended September, 30

Sechaba Brewery Holdings Ltd, SABMiller’s subsidiary in Botswana, posted on November, 14 its unaudited results for the 6 months ended on September, 30.

The Group delivered satisfactory interim results for the year through good performance of the associate companies, Kgalagadi Breweries (Pty) Ltd (KBL) and Botswana Breweries (Pty) Ltd (BBL).

The company said its consolidated sales amounted to P734,907 thousand, an increase of 33% over the first half of 2007.

Consolidated gross profit grew to P260,124 thousand (+13%), operating profit constituted P165,861 thousand (17%), profit before tax – P158,003 thousand (+16%), and profit after tax was 143,887 thousand (+22%).

Prospects

Trading conditions are expected to be difficult during the second half of the financial year following the announcement of a 30% levy on alcoholic beverages, which became effective 1st November 2008. This levy will increase the factory and import prices of beer and other alcoholic beverages by 30%. A significant reduction in after tax profits is anticipated as a result of the expected decrease in sales volumes which will result from the consequent pricing adjustment.


19 November, 2008