Rédaction Africa Links 24 with The Africa Links 24
Published on 2024-04-04 19:56:57
Kgalagadi Breweries Limited (KBL) has seen a significant increase in profit after tax for the year ending 31 December 2023, with a remarkable 21 percent growth. This surge in profit has also had a positive impact on majority shareholder Sechaba Holdings Limited (SBHL), with KBL’s profit rising from P449.4 million to P545.3 million in the previous year. According to Sechaba’s Chairman Tabuya Tau and Managing Director Faith Nteta, the success of KBL can be attributed to factors such as product mix and pricing.
On the other hand, sister company Coca Cola Beverages (Botswana) (CCBB) has reported a 25.5 percent decline in profit after tax, primarily due to increased operational costs such as maintenance, fuel, and utilities. Despite this, SBHL has experienced a 22 percent increase in profit after tax compared to the previous year, driven by a rise in sales revenue.
Both CCBB and KBL have shown positive net revenue growth rates of 12.5 percent and 12.3 percent, respectively. Tau and Nteta have expressed optimism about Botswana’s projected favorable economic environment, anticipating improved performance for SBHL and its associates in the future.
The financial results of SBHL are closely linked to those of its two associates, KBL and CCBB. KBL specializes in manufacturing, importing, distributing, and marketing a range of beverages, including clear beer, alcoholic fruit beverages, and traditional beers. CCBB, on the other hand, focuses on the manufacturing, distribution, and marketing of soft drinks, purified water, and other non-alcoholic beverages.
Despite challenges in the current business landscape, SBHL and its associates are committed to adapting and thriving to maximize shareholder value. The company is dedicated to navigating the complexities and uncertainties of the market to ensure continued success.
In conclusion, KBL’s impressive profit growth driven by product mix and pricing highlights the company’s strong performance in the market. While CCBB faced challenges leading to a decline in profit, SBHL as a whole has shown resilience and growth, positioning itself for success in the future. The commitment to adapt and thrive in a changing business environment demonstrates SBHL’s dedication to delivering value to its shareholders and maintaining its competitive edge in the market.
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