Seychelles Breweries Ltd holds 54th AGM |05 December 2022
Positive performance means second dividend payout this year
Shareholders of Seychelles Breweries Limited (SBL) are to benefit from a dividend payout of R3.97 per share, with the increase in operating profit R142.9 million, as compared to R95.9 million in 2021.
The vote was taken during the company’s 54th annual general meeting held at the Savoy Resort & Spa on Friday.
According to Director and Chairman Anthony Smith, gross profit increased by 45 percent in the year, well ahead of pre-Covid levels. The increase in operating profit is primarily driven by gross margin expansion, and amped up investment in its brands.
“I am delighted to report that SBL delivered excellent results in the financial year 2022. Our continued focus on expanding market share, growing talent and capabilities, and getting closer to our consumers contributed to more than offsetting the remaining economic headwinds in the year 2022,” Mr Smith said.
“I am also very proud of our flagship beer, Seybrew, which won a Gold Medal in the African Beer Cup ‘International Lager’ category, while also clinching third overall in the competition for the title of Best Beer in Africa out of 251 beers. For a small brewery in the middle of the Indian Ocean, it is something that all Seychelles should be proud of,” Mr Smith noted.
SBL is the only total beverage company in Seychelles with a portfolio spanning beer, ready-to-drink (RTD), carbonated soft drinks (CSD), and spirit categories across returnable glass, PET and can formats. New offerings include Smirnoff Guarana, Guiness Smooth, as well as a portfolio of canned products.
In financial year 2022, the company recorded revenue growth of 15.7 percent as compared to only 4.6 percent in 2021, meaning it is now officially a half-billion Rupee business. It saw growth across all categories of products, namely, beer revenues which increased by 14 percent, CSD by 14.7 percent, while spirits grew 10.9 percent in the year.
The organisation’s RTD range had a breakthrough performance, growing 42.6 percent in the year, as compared to 4.8 percent in 2021. This is despite numerous supply chain challenges, on account of global external factors impacting in importation and logistics. Despite emerging inflationary pressure on raw materials and freight due to foreign conflicts, SBL has emerged stronger as a business, with more stable operations, improved cost management, materials planning, and logistics, quality and line efficiencies.
SBL has over 1300 shareholders, and a further 45,000 local stakeholders on account of the SPF’s stake in the business.
With 2022 being the 50th year of the incorporation of Seychelles Breweries and the flagship brand, the board approved a special, one-off dividend of R50 million (R3.97 per share) to reward shareholders.
Asides from the overview of the company’s financial performance, shareholders voted to approve the minutes from the 53rd AGM, the Director and Auditor’s reports, and financial statements for the year ending June 2022.
BDO Associates, whose representatives were present, was once again endorsed as the auditing company.
Also on the agenda was the vote to reappoint Nisreen Abdul Majid and Devsh Dutt as directors. They also approved a sum of R6.8 million as remuneration for the managing director Connor Neiland, R3.2 million for finance manager, Mr Dutt, and to authorise the director to set the remuneration for the auditors for the 2022/2023 fiscal year.
Discussing other matters, shareholders raised questions in relation to the use of PET bottles, quality control measures, as well as SBL’s engagement towards the community through the newly launched foundation.
Remuneration for SBL staff following the positive performance was also on the table.
The SBL panel also comprised director Jean Weeling-Lee, director Rod Thorrington, and director Obinna Chimere Anyalebachi.
Also present for the meet were representatives of PKF Capital Markets (Seychelles) Ltd.