KBL sustains Sechaba despite ban on alcohol
Despite perennial bans on alcohol sale in an effort to control corona virus, Kgalagadi Brewery Limited ( KBL) continues to contribute extensively to Sechaba Brewery Holdings Limited ( SBHL)’ s profits and revenues. The company’s half year results for the year ended 30 June 2021 indicate that KBL’s contributions to revenue were 72.6 percent compared to Coca Cola Beverages Botswana ( CCBB)’ s 27.3 percent while in revenue KBL contributed 67.1 percent versus 32.8 percent in profits. SBHL recorded a profit before tax of P81, 047 million compared to P38, 880 million in 2020. SBHL Chairperson, Faith Nteta said the company’s subsidiaries are employing strategies to reduce the potential negative consequences of the impacts of COVID- 19 and to improve resilience in the changing environment during and after the pandemic.
“These strategies will also be adopted to overcome vulnerability to future disruptions and capitalize more effectively on the opportunities arising in the post COVID- 19 recovery phase,” said Nteta. She said the subsidiaries also anticipate that the strategies will position them to continue winning in the market place as a greater certainty and stability return.
“In the prior year, the first half of the year had in it stringent measures by the government to curb COVID- 19 pandemic which included the ban on the sale of alcohol for a significant portion of the 2020 half year,” said Nteta. However, the financial year, 2021 had less measures impacting trade in comparison to the prior period.
According to KBL over 50,000 lives and 200,000 livelihoods represented in the industry and its extensive value chain are affected each time an alcohol ban is implemented. Meanwhile, CCBB has invested $ 22 million, approximately P241.05 million into a new water recycling plant to help reduce tap water used to produce the company’s products. The company said it will re- use water from effluent for its manufacturing facility’s cooling towers and monitor water usage to help reduce waste.