Sechaba FY profits rise

Sechaba Brewery Holdings Limited, the parent company to Kgalagadi Breweries Limited, on Tuesday had shareholders in glee as it announced that financial results for the full year ended 31 December 2021, will be much higher compared to the previous comparable period. According to a statement, the group, which is quoted on the Botswana Stock Exchange, profit before tax is expected to be higher by between 25percent to 33percent when compared to December 2020. This translates to an increase of between P42 million and P55 million. The profit before tax for the year ended 31 December 2020 was P168 million. “The improvement in performance is at the backdrop of improved SBHL associate companies’ performance,” said the company whose Managing Director is Mabu Nteta.

The results, which are being finalised will be published before March 2022. Accordingly, the shareholders of SBHL have been advised to exercise caution when trading in the company’s securities until a full announcement is made. During the onset of COVID 19, Sechaba associates, KBL lost millions of Pula as a result of lockdowns and back- to- back bans on alcohol sales. In the past, KBL was the biggest contributor to Sechaba bottom line. Sources have said since the unbanning of alcohol sale last September, KBL has seen a rapid increase on sales across most of its brands. The other associate of Sechaba, Coca Cola Beverages Botswana, has previously complained about last year’s introduction of Sugar tax, arguing it will dent profitability.