Sechaba Holdings Limited part owners of Botswana ‘s biggest brewers KBL and Coca Cola Beverages Botswana (CCBB, has registered a significant rise in profits for the financial year ended 31st December 2021, attributable mainly to increase in volume traded for both KBL and CBB.
Sechaba Brewery Holdings Limited (SBHL), listed on Botswana Stock Exchange holds 49.9% shareholding in Kgalagadi Breweries (Pty) Ltd (KBL) and 49.9% in Coca Cola Beverages (Botswana) (Pty) Ltd (CCBB). 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 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.
For the year 2021, Sechaba overall volumes increased by 11% during the year ended 31 December 2021, with KBL volumes increasing by 5% whilst CCBB volumes increased by 18%.
Sechaba achieved a 29% overall increase in profit after tax when compared to previous year results. The main drivers for this performance was 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% for CCBB and 14.3% for KBL.
Inthe financial results released last week Sechaba hailed Botswana Government ‘s economic response plan and the vaccination roll out programme, as having contributed positively to the improvement in associates’ performance.
More than 80% 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 company said.
According to Sechaba 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.