Sechaba H1 profits down on tight regulations

Sechaba MD, Johan De Kok
Monday, 21 August 2017
Sechaba MD, Johan De Kok Sechaba MD, Johan De Kok

Sechaba Breweries has reported lower interim results to June 2017, citing tough regulatory regime which has been a thorn for the country‘s biggest brewer since 2008.  For the period under review, profit after income tax closed at P47, 5 million, down from P55, 1 million recorded previously. According to a statement signed by Board Chairman , Thabo Matthews and Managing Director, Johan De Kok, total volumes plummeted by 6 ,3 percent for the year under review.

“All categories recorded a decline with exception of non-alcoholic beverages,” said the group, which is listed at BSE. Sechaba owns Kgalagadi Breweries Limited (KBL), the company responsible for the production of soft drinks, clear and opaque beers. The Alcoholic Levy, which is currently at 55 percent, has been put in place to control alcohol abuse in the country challenged by road accidents and HIV/AIDS. However, brewers like KBL have been adversely affected by the Levy. Similarly, the traditional beer regulations which were put in place some few years after the imposed Alcohol Levy has also dampened KBL‘s opaque beer division. The results have been closures of beer depots and subsequent job losses. 

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