SECHABA BREWERY HOLDINGS LIMITED unaudited abridged FINANCIAL RESULTS half YEAR ENDED
30th june 2022
Company Registration No BW00000952293| BSE Share Code: SECHABA| P.O.BOX 1956 AAD, Gaborone, Botswana | sechabaenquiries@sbhl.co.bw
SECHABA BREWERY HOLDINGS LIMITED | SECHABA BREWERY HOLDINGS LIMITED |
STATEMENT OF COMPREHENSIVE INCOME for the period ended 30 June 2022 | STATEMENT OF CASH FLOWS for the period ended 30 June 2022 |
Incorporated in the Republic of Botswana
Introduction
INCOME
Share of profit after tax of associates
Interest income
Other Investment 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-202230-Jun-2021
P'000 P'000
101,63283,048
158353
22
(2,003)(2,056)
101,214 81,047
(24,757)(6,284)
76,457 74,763
- | - |
76,457 | 74,763 |
69.1267.59
30-Jun-2022 | 30-Jun-2021 | ||
P'000 | P'000 | ||
Cash flows from operating activities | |||
Net cash utilised in operations | (2,039) | (2,137) | |
Income tax paid | (6,105) | (736) | |
Net cash utilised in operating activities | (8,144) | (2,873) | |
Cash flows from investing activities | |||
Dividends received | 60,736 | 9,158 | |
Interest received | 1,583 | 53 | |
Net cash utilised in investing activities | 62,319 | 9,211 | |
Cash flows from financing activities | |||
Dividends paid to shareholders | (107,959) | (27,768) | |
Net cash utilised in financing activities | (107,959) | (27,768) | |
Changes in cash and cash equivalents | (53,784) | (23,227) | |
Movement in cash and cash equivalents | |||
Cash and cash equivalents at 01 January | 67,494 | 30,430 | |
Changes in cash and cash equivalents | (53,784) | (21,430) |
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 ended 30 June 2022. 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). SBHL's results for the period are therefore directly related to the performance of its two associates. Both KBL and CCBB are companies registered in Botswana. KBL is involved in the manufacture, import and distribution of a range of clear beers, opaque beer and the distribution of a range of imported beers. CCBB on the other hand is involved in the production, import and distribution of a range of soft drinks, purified water and other non-alcoholic beverages.
Volume performance
Overall sales volumes increased during the half-year period ended 30th June 2022, with KBL volumes increasing by 34% (from 545.1 HL to 732.1 HL) whilst CCBB volumes increased by 2% (from *504.4 HL to 515.8 HL).
SECHABA BREWERY HOLDINGS LIMITED
STATEMENT OF FINANCIAL POSITION for the period ended 30 June 2022
30-Jun-2022 | 31-Dec-2021 | ||
P'000 | P'000 | ||
ASSETS | |||
Non-current assets | |||
Investment in associates | 901,797 | 860,901 | |
Current assets | |||
Trade and other receivables | 257 | 19 | |
Cash and cash equivalents | 13,710 | 67,494 | |
13,967 | 67,513 | ||
Total assets | 915,764 | 928,414 | |
Cash and cash equivalents at 30 June | 13,710 | 9,000 | |
SECHABA BREWERY HOLDINGS LIMITED
STATEMENT OF CHANGES IN EQUITY for the period ended 30 June 2022
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 2021 | 194,548 | 388 | 528,554 | 723,490 | |||
Profit for the period | - | - | 74,763 | 74,763 | |||
Other Comprehensive income | - | - | - | - | |||
Total Comprehensive income for the period | - | - | 74 763 | 74 763 | |||
Dividends paid | |||||||
2020 financial year - final dividends | - | - | (27,654) | (27,654) | |||
Total transaction with owners | - | - | 47,109 | 47,109 | |||
*Note: June 2021 volume at 504.4 HL has been changed from 469.5HL which was previously reported. The difference is due to conversion from unit cases to hectolitres.
Financial performance
Overall, Sechaba Brewery Holdings Limited (SBHL) achieved a 2% increase in profit after tax when compared to previous half-year results. The main drivers for this performance were the increase in sales volumes for both CCBB and KBL. SBHL revenue increased by 22% driven by the share of Profit after tax of associates. Both CCBB and KBL had positive revenue growth at 13.2% for CCBB and 40.4% for KBL. In terms of profit after tax, KBL achieved a 56% increase compared to prior year. This comes as result of increased sales volume in comparison to financial year 2021 which was impacted by alcohol bans, hence performance was lower than PRE- COVID -19 trends. CCBB on the other hand had a 62% reduction in profit after tax mainly due to higher cost of sales as a result of increased commodity prices. The impact of rising inflation on the economy and business operations cannot go unobserved during this reporting period. From a liquidity perspective the company has sufficient liquidity to sustain operations for the next 12 months and beyond.
EQUITY AND LIABILITIES | |||
Capital and reserves | |||
Stated capital | 194,548 | 194,548 | |
Hedging reserves | 388 | 388 | |
Retained earnings | 651,485 | 683,433 | |
Total equity | 846,421 | 878,369 | |
Non-current liabilities | |||
Deferred taxation | 61,025 | 42,701 | |
Current liabilities | |||
Trade and other payables | 218 | 19 | |
Dividend payable | 7,757 | 7,311 | |
Current taxation payable | 343 | 14 | |
8,318 | 7,344 | ||
Total liabilities | |||
69,343 | 50,045 | ||
Total equity and liabilities | 915,764 | 928,414 | |
Balance at 30 June 2021 | 194,548 | 388 | 575,663 | 770,599 | |||
Balance at 1 July 2021 | 194 548 | 388 | 575,663 | 770 599 | |||
Profit for the period | - | - | 125,469 | 125,469 | |||
Other Comprehensive income | - | - | - | - | |||
Total Comprehensive income for the period | - | - | 125,469 | 125,469 | |||
Dividends paid | |||||||
2021 financial year - interim dividends | - | - | (17,699) | (17,699) | |||
Total transaction with owners | - | - | 107,770 | 107,770 | |||
Balance at 31 December 2021 | 194,548 | 388 | 683,433 | 878,369 | |||
Balance at 1 January 2022 | 194 548 | 388 | 683 433 | 878 369 | |||
Profit for the period | - | - | 76,457 | 76,457 | |||
Other Comprehensive income | - | - | - | - | |||
Total Comprehensive income for the period | - | - | 76,457 | 76,457 | |||
Dividends paid | |||||||
2021 financial year - final dividends | - | - | (108,405) | (108,405) | |||
Total transaction with owners | - | - | (31,948) | (31,948) | |||
Balance at 30 June 2022 | 194,548 | 388 | 651,485 | 846,421 | |||
SECHABA BREWERY HOLDINGS LIMITED
Business outlook
In 2022, there has been some evidence of a global economic recovery. The economic activity has returned close to normal as a result of the removal of limitations on travel and business operations, which forms the backdrop to this recovery. In 2022, a 4.3% growth in the domestic economy is predicted. The performance of SBHL and its associates is anticipated to continue improving with the enabling environment and eventually surpass PRE-COVID-19 operating standards. Working to maximize shareholder value, SBHL and its associates continue to adapt to highly unpredictable, complicated, and turbulent business scenarios. Building a resilient recovery will be SBHL associates' key focus area as they implement breakthrough sustainable strategies, manage enterprise agility and strengthen internal capabilities. Together with its associates SBHL will build lasting external networks and partnerships. The company will continuously monitor the market and remain focused on rapid innovation in the POST-COVID 19 era.
The charts below depict the contributions per entity to the total share of revenue as well as the contributors to the share of profit earned by SBHL:
Contribution to revenue | Contribution to profit |
Reconciliation of net assets to equity accounted investments in associates
9%
Summarised performance
30-Jun30-Jun | ||||
2022 | 2021 | % Change | ||
KBL Volumes (HL '000) | 732.1 | 545.1 | 34% | |
KBL results | P'000 | P'000 | ||
Profit before tax | 217,521 | 151,403 | 44% | |
Taxation | (31,949) | (32,082) | 0% | |
Profit after tax | 185,572 | 119,321 | 56% | |
CCBB Volumes (HL '000) | 515.8 | 504.4 | 2% | |
CCBB results | P'000 | P'000 | ||
Profit before tax | 21,062 | 57,064 | (63%) | |
Taxation | (2,962) | (9,960) | (70%) | |
Profit after tax | 18,100 | 47,104 | (62%) | |
Sechaba results | P'000 | P'000 | ||
Share of results of associates | ||||
101,632 | 83,048 | 22% | ||
Operating period | 101,214 | 81,047 | 25% | |
Profit after taxation for the period | 76,457 | 74,763 | 2% | |
Total comprehensive income | ||||
76,457 | 74,763 | 2% | ||
Thebe | Thebe | |||
Earnings per share | 69.12 | 67.59 | 2% |
Kgalagadi Breweries | Coca cola Beverages | Total | ||||
Limited (Pty) Ltd | (Botswana) (Pty) Ltd | |||||
P'000 | P'000 | P'000 | ||||
30 June 2022 | ||||||
Total net assets of the associate | 1,292,792 | 332,654 | 1,625,446 | |||
Share of net assets of associates 49.9% | 645,103 | 165,994 | 811,097 | |||
Goodwill | 90,700 | - | 90,700 | |||
Carrying value | 735,803 | 165,994 | 901,797 | |||
Reconciliation: | ||||||
Investment as at 01 January 2022 | 698,592 | 162,309 | 860,901 | |||
Share of profit | 92,600 | 9,032 | 101,632 | |||
Share of dividend received from associates | (55,389) | (5,347) | (60,736) | |||
Investment as at 30 June 2022 | 735,803 | 165,994 | 901,797 | |||
31 December 2021 | ||||||
Total net assets of the associate | 1,218,221 | 325,265 | 1,543,486 | |||
Share of net assets of associates 49.9% | 607,892 | 162,309 | 770,201 | |||
Goodwill | 90,700 | - | 90,700 | |||
Carrying value | 698,592 | 162,309 | 860,901 | |||
Reconciliation: | ||||||
Investment as at 01 January 2021 | 596,176 | 137,601 | 733,777 | |||
Share of profit | 157,805 | 65,147 | 222,952 | |||
Share of dividend received from associates | (55,389) | (40,439) | (95,828) | |||
Investment as at 31 December 2021 | 698,592 | 162,309 | 860,901 |
The summarised information presented above reflects the financial statements of the associates after adjusting for differences in accounting policies between the company and the associate.
28%
72% | 91% |
KBL | CCBB | KBL | CCBB |
Dividend Declaration
The Board of Directors of Sechaba Brewery Holdings Limited declared interim dividend of 26 thebe per share. This dividend shall be paid on 20th October 2022, to those shareholders registered on the last date to register, being the close of business on 11th October 2022. The ex-dividend date will be 7th October 2022. 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 2022 for the dividend amount.
______________________ | ______________________ |
Tabuya Tau | Faith Asnath Nteta |
Chairman | Managing Director |
Date: 22 September 2022 |
Directors
Name
SECHABA BREWERY HOLDINGS LIMITED CONTACTS
Company Secretaries & Registered Office | Operational address | Sponsoring Brokers | Transfer Secretaries | External Auditors | ||||
Transfer secretaries | ||||||||
Grant Thornton Business Services | Plot 20768 Kubu Road | IMARA CAPITAL SECURITIES | CORPSERVE BOTSWANA | Ernst & Young | ||||
Plot 50370 , Acumen Park, Fairgrounds, Gaborone | Broadhurst Industrial Estate | A Member of the Botswana Stock Exchange | Unit 206, Second Floor, Plot 64516, Showgrounds | Plot 22 Khama Crescent | ||||
P O Box 1157, Gaborone, | P O Box 1956 AAD, Poso House, | Plot 74770 Western Commercial Road, New CBD | Close, Fairgrounds, Gaborone | P.O. Box 41015 | ||||
Botswana | Gaborone, Botswana | Private Bag 173, Gaborone, Botswana | P.O. Box 1583, Gaborone, Botswana | Gaborone, Botswana | ||||
Email: sechabaenquiries@sbhl.co.bw | Tel: +267 318 8886 | Tel: +267 393 2244 | Tel: +267 397 4078 | |||||
Tel: +267 739 23125 | ||||||||
Tabuya Tau | Chairman | Non-executiveIndependent |
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 |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Sechaba Brewery Holdings Limited published this content on 23 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 September 2022 08:39:09 UTC.
