SECHABA BREWERY HOLDINGS LIMITED unaudited Abridged Financial Results
for THE HALF
YEAR ended
30 June 2023
Company Registration No BW00000952293 | BSE Share Code: SECHABA| P.O.BOX 1956 AAD, Gaborone, Botswana | sechabaenquiries@sbhl.co.bw
Sechaba Brewery Holdings Limited
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME for the period ended 30 June 2023
Sechaba Brewery Holdings Limited
STATEMENT OF CASH FLOWS for the period ended 30 June 2023
Incorporated in the Republic of Botswana
Statement onbasisandpreparationoftheAnnualFinancialStatements
INCOME
Share of profit after tax of associates
Interest income
Other Income
Administration and other expenses
PROFIT BEFORE TAX
Income tax expense
PROFIT FOR THE PERIOD
Other comprehensive income
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
Earnings per share
Per share information
Basic earnings per share (thebe)
30-Jun-2023
P'000
131,482
2,367
-
(1,791)
132,058
(13,664)
118,394
-
118,394
107.03
30-Jun-2022
P'000
101,632
1,583
2
(2,003)
101,214
(24,757)
76,457
-
76,457
69.12
30-Jun-202330-Jun-2022 | |||
P'000 | P'000 | ||
Cash flows from operating activities | |||
Net cash utilised in operations | (1,862) | (2,039) | |
Income tax paid | (14,021) | (6,105) | |
Net cash utilised in operating activities | (15,883) | (8,144) | |
Cash flows from investing activities | |||
Dividends received | 136,752 | 60,736 | |
Purchase of equipment | (32) | ||
Interest received | 2,367 | 1,583 | |
Net cash generated from investing activities | 139,087 | 62,319 | |
Cash flows from financing activities | |||
Dividends paid to shareholders | (144,147) | (107,959) | |
Net cash utilised in financing activities | (144,147) | (107,959) | |
Changes in cash and cash equivalents | (20,943) | (53,784) | |
Movement in cash and cash equivalents | |||
Cash and cash equivalents at 01 January | 45,000 | 67,494 | |
Changes in cash and cash equivalents | (20,943) | (53,784) |
The Board of Directors of Sechaba Brewery Holdings Limited (SBHL) has the pleasure to present to you the abridged unaudited financial results and position for the half year period ended 30 June 2023. The accounting policies adopted comply in all material respects with the International Financial Reporting Standards and are consistent with the previous reported period.
About SBHL
Sechaba Brewery Holdings Limited (SBHL) holds 49.9% shareholding in Kgalagadi Breweries (Pty) Ltd (KBL) and 49.9% in Coca Cola Beverages (Botswana) (Pty) Ltd (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 also 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. SBHL's results for the period therefore directly relate to those of its two associates - KBL and CCBB.
Volume performance
Overall volumes sales increased during the half year period ended 30 June 2023,with KBL volumes decreasIng slightly by 0.5% (from 732.1 HL to 728.7 HL) whilst CCBB volumes increased by 3% (from 515.8 HL to 532.6 HL).
Financial performance
Sechaba Brewery Holdings Limited
Cash and cash equivalents at 30 June | 24,057 | 13,710 |
Sechaba Brewery Holdings Limited (SBHL) achieved a 55% overall increase in
STATEMENT OF FINANCIAL POSITION as at 30 June 2023
30-Jun-2023 | 31-Dec-2022 | ||
P'000 | P'000 | ||
ASSETS | |||
Non-current assets | |||
Equipment | 42 | 12 | |
Investment in associates | 992,836 | 998,106 | |
992,878 | 998,118 | ||
Current assets |
Sechaba Brewery Holdings Limited
STATEMENT OF CHANGES IN EQUITY for the period ended 30 June 2023
Attributable to equity holders of the company | |||||
Stated | Hedging | Retained | Total | ||
Capital | Reserves | Earnings | |||
P'000 | P'000 | P'000 | P'000 | ||
Balance at 1 January 2022 | 194,548 | 388 | 683,433 | 878,369 | |
Profit for the period | - | - | 76,457 | 76,457 | |
Other comprehensive income | - | - | - | - |
profit after tax when compared to previous half year results. The main drivers for this performance was the increase in sales revenue. Total volumes increased by 1% from 1,247.9 HL to 1,261.3 HL. SBHL revenue increased by 29% driven by share of Profit after tax of associates. Both CCBB and KBL had a positive net revenue growth rate at 16.6% for CCBB and 6.7% for KBL. In terms of profit after tax, KBL achieved a 33.2% increase in comparison to prior year mainly driven by pricing, cost containment measures and increased other income. CCBB on the other hand had a 10% reduction in profit after tax mainly due to an increase in operational expenditure such as maintenance costs, fuel and utilities. SBHL is pleased to report a robust liquidity position, exemplifying sound financial management and ability to meet our immediate financial commitments. Our liquidity is a testament to our prudent financial practices, operational efficiency,
Trade and other receivables
Cash and cash equivalents
Total assets
EQUITY AND LIABILITIES
Capital and reserves
Stated capital
Hedging reserves
Retained earnings
Total equity
Non-current liabilities Deferred taxation
Current liabilities
360
24,057
24,417
1,017,295
194,548
388
741,743
936,679
70,130
255
45,000
45,255
1,043,373
194,548
388
769,363
964,299
70,656
Total comprehensive income for the period | - | - | 76 457 | 76 457 |
Dividends paid | ||||
2021 financial year - final | - | - | (108,405) | (108,405) |
Total transaction with owners | - | - | (31,948) | (31,948) |
Balance at 30 June 2022 | 194,548 | 388 | 651,485 | 846,421 |
Balance at 1 July 2022 | 194 548 | 388 | 651,485 | 846 421 |
Profit for the year | - | - | 146,638 | 146,638 |
Other comprehensive income | - | - | - | - |
Total comprehensive income for the period | - | - | 146,638 | 146,638 |
Dividends paid | ||||
2022 financial year interim dividends | - | - | (28,760) | (28,760) |
Total transaction with owners | - | - | 117,878 | 117,878 |
Balance at 31 December 2022 | 194 548 | 388 | 769 363 | 964 299 |
Balance at 1 January 2023 | 194 548 | 388 | 769 363 | 964 299 |
Profit for the period | - | - | 118,394 | 118,394 |
and strategic planning.The company believes that there is sufficient liquidity to sustain operations for the next 12 months and beyond.
Business outlook
A global economic rebound has become evident in recent times. In the case of Botswana, there was a 5.8% rise in real GDP during the year 2022, which, while positive, marked a decrease from the substantial 11.9% growth seen in 2021. Projections indicate that GDP expansion will persist, with anticipated growth rates of 3.8% and 4.4% forecasted for the years 2023 and 2024, respectively. This resurgence in economic performance is closely linked to the gradual return to normalcy as business operations restrictions related to the pandemic have been lifted. Anticipations suggest that the conducive environment will foster an enhanced performance for SBHL associates. It is essential to recognize that business conditions can change rapidly, therefore, our associates will continue to remain agile, responsive to market trends, and committed to sustainable practices to thrive in the evolving local and global business landscape in pursuit of optimising shareholder value. SBHL and its associates places strong emphasis on sustainability throughout operations, from sourcing ingredients, adopting eco-friendly practices and packaging materials to meet consumer demands and reduce on carbon
Trade and other payables | 484 | 452 | ||
Dividend payable | 9,612 | 7,745 | ||
Current taxation payable | 390 | 221 | ||
10,486 | 8,418 | |||
Total liabilities | ||||
80,616 | 79,074 | |||
Total equity and liabilities | 1,017,295 | 1,043,373 | ||
Summarised performance
30-Jun-202330-Jun-2022 % Change | |||
KBL Volumes (HL '000) | 728.7 | 732.1 | (0.5%) |
P'000 | P'000 | ||
KBL results | |||
Profit before tax | 292,233 | 217,521 | 34% |
Taxation | (45,057) | (31,949) | 41% |
Profit after tax | 247,176 | 185,572 | 33% |
CCBB Volumes (HL '000) | 532.6 | 515.8 | 3% |
CCBB results | P'000 | P'000 | |
Profit before tax | 20,620 | 21,062 | (2%) |
Taxation | (4,304) | (2,962) | 45% |
Profit after tax | 16,316 | 18,100 | (10%) |
SBHL Results | P'000 | P'000 | |
Share of results of associates | 131,482 | 101,632 | 29% |
Profit before tax for the period | 132,058 | 101,214 | 30% |
Profit after tax for the period | 118,394 | 76,457 | 55% |
Total comprehensive income | |||
118,394 | 76,457 | 55% | |
Thebe | Thebe | ||
Earnings per share | 107.03 | 69.12 | 55% |
Other Comprehensive income | - | - | - | - |
Total Comprehensive income for the period | - | - | 118,394 | 118,394 |
Dividends paid | ||||
2022 financial year - final dividends | - | - | (146,014) | (146,014) |
Total transaction with owners | - | - | (27,620) | (27,620) |
Balance at 30 June 2023 | 194,548 | 388 | 741,743 | 936,679 |
Sechaba Brewery Holdings Limited
RECONCILIATION OF NET ASSETS TO EQUITY ACCOUNTED INVESTMENTS IN ASSOCIATES
Kgalagadi Breweries | Coca cola Beverages | Total | |||
Limited (Pty) Ltd | (Botswana) (Pty) Ltd | ||||
P'000 | P'000 | P'000 | |||
30 June 2023 | |||||
Total net assets of the associate | 1,488,802 | 319,084 | 1,807,886 | ||
Share of net assets of associates 49.9% | 742,913 | 159,223 | 902,136 | ||
Goodwill | 90,700 | - | 90,700 | ||
Carrying value | 833,613 | 159,223 | 992,836 | ||
Reconciliation: | |||||
Investment as at 01 January 2023 | 839,513 | 158,593 | 998,106 | ||
Share of profit | 123,341 | 8,141 | 131,482 | ||
Share of dividend received from associates | (129,241) | (7,511) | (136,752) | ||
Investment as at 30 June 2023 | 833,613 | 159,223 | 992,836 | ||
31 December 2022 | |||||
Total net assets of the associates | 1,500,626 | 317,817 | 1,818,443 | ||
Share of net assets of associates 49.9% | 748,813 | 158,593 | 907,406 | ||
Goodwill | 90,700 | - | 90,700 | ||
Carrying value | 839,513 | 158,593 | 998,106 | ||
Reconciliation: | |||||
Investment as at 01 January 2022 | 698,592 | 162,309 | 860,901 | ||
Share of profit | 224,254 | 41,633 | 265,887 | ||
Share of OCI | - | - | - | ||
Share of dividend received from associates | (83,333) | (45,349) | (128,682) | ||
Investment as at 31 December 2022 | 839,513 | 158,593 | 998,106 |
The summarised information presented above reflects the financial statements of the associates after adjusting for differences in accounting policies between the company and the associates.
footprint.
Jun-2023 | Jun-2023 | ||
Contribution to revenue | Contribution to profit | ||
6% | |||
30% | |||
70% | 94% | ||
KBL | CCBB | KBL | CCBB |
2022 - 72:28 | 2022 - 91:09 |
Dividend Declaration
In line with the provisions of Section 58 of the Botswana Companies Act (Cap 42:01), the Board of Directors of Sechaba Brewery Holdings Limited declared interim dividend of 10.3 thebe per share. The dividend distribution is subject to ratification by the shareholders at the Annual General Meeting. This dividend shall be paid on 23rd October 2023, to those shareholders registered on the last date to register, being close of business on 11th October 2023. The ex-dividend date will be 9th October 2023. Withholding taxes in terms of the Republic of Botswana Income Tax Act (Cap 52:01), as amended, has been applied to the dividend payment. No provision has been raised in the financial statements for the period ended 30th June 2023 for the dividend amount.
______________________ | ______________________ |
Tabuya Tau | Faith Asnath Nteta |
Chairman | Managing Director |
Date: 15 September 2023 |
Directors
Name | ||
Tabuya Tau | Chairman | Non-executiveIndependent |
SECHABA BREWERY HOLDINGS LIMITED CONTACTS
Company Secretaries & Registered Office | Operational address | Sponsoring Brokers | Transfer Secretaries | External Auditors | ||||
Grant Thornton Business Services | Plot 54367, CBD, 2nd Floor Mogobe Plaza | IMARA CAPITAL SECURITIES | CORPSERVE BOTSWANA | Ernst & Young | ||||
Plot 50370 , Acumen Park, Fairgrounds, Gaborone | P.O Box 1956 AAD, Gaborone, Botswana | A Member of the Botswana Stock Exchange | Unit 206, Second Floor, Plot 64516, Showgrounds | Plot 22 Khama Crescent | ||||
P O Box 1157, Gaborone, | Email: sechabaenquiries@sbhl.co.bw | Plot 74770 Western Commercial Road, New CBD | Close, Fairgrounds, Gaborone | P.O. Box 41015 | ||||
Botswana | Tel: +267 739 23125 | Private Bag 173, Gaborone, Botswana | P.O. Box 1583, Gaborone, Botswana | Gaborone, Botswana | ||||
Tel: +267 395 2313 | Tel: +267 318 8886 | Tel: +267 393 2244 | Tel: +267 365 4000 | |||||
Faith Asnath Nteta | Managing Director | Executive |
Meshack Tshekedi | Member | Non-executiveIndependent |
Boitumelo Paya | Member | Non-executiveIndependent |
Modise Mokone | Member | Non-executiveIndependent |
Jayaraman Ramesh | Member | Non-executiveIndependent |
Gorata Tlhale Dibotelo | Member | Non-executiveIndependent |
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Disclaimer
Sechaba Brewery Holdings Limited published this content on 22 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 September 2023 13:17:07 UTC.
