SBL announces 23% loss compared to last year |07 November 2016

Seychelles Breweries Ltd (SBL) or SeyBrew as the company is commonly known has announced that it has recorded an overall 23% loss compared to last year. According to its interim annual report and financial statements released last week for the financial year which ended on June 30, 2016, profit before tax represents a total sum of 72 million 976 rupees, compared to 94 million 815 rupees last year.

Speaking to the press last week, managing director (MD) Nicholas Cook explained the loss by sales’ decline suffered as from half way during the business year and which resulted in a sales’ revenue decline of 11%. This was itself the direct result of a breach of supply of some of the company’s core brands, including the SeyBrew beer, as a result of breakdown and unreliability of what he has called “aged equipment”. This he says has included utilities, refrigeration system and boiler.

Added to the inability to run production at full capacity, the company also had to shut down the production plant for several days in order to replace the failing equipment. This has meant a significant investment which has also gone in the upgrade of the steam condensate system and of the brew house operating system.

SBL has moreover announced that a review of its tax calculations in order to rectify what the company felt was a faulty calculating system for the years 2014 and 2015 has resulted in a further profit after tax decline of 85%.

As a result of the challenges met, huge capital investment incurred and the overall loss, the MD has described 2016 as “a stabilising year”.

He however added that the investments made are having a positive impact on the brewery’s operational efficiency through waste reduction, utilities’ consumption and a more consistent and reliable brewing process, resulting in significant quality improvement, including that of the SeyBrew beer.

Other factors which Mr Cook feels have helped increase performance is the company’s new branding with a new logo and its listing on Trop-X since June this year.

“The significant problems are way behind as we have significantly jumped up the ladder,” the MD has wished to ensure customers, adding that SBL is also currently working closely with distributors and retailers in terms of transportation, stock keeping and refrigeration in order to provide them with optimal quality products.

He has also ensured that shareholders will not be negatively impacted by the loss, as “the value of the business in terms of assets and cash has not declined significantly”.

To prove that SBL is rapidly getting back on course, its MD has promised a new product which will come as a special and surprise gift for Christmas!

Sure Seychellois enthusiasts will be waiting impatiently too as SBL’s motto goes, stay “as Seychellois as we are”!