Mauritius’ Phoenix Beverages declares higher profits; buys soft drinks brand Eski
L to R: Bernard Theys, CEO at Phoenix Beverages Limited (PBL), Jean-Claude Bega, Chairman of the Board at PBL and Patrick Rivalland, Senior Manager of Finance and Administration at PBL (Image: Cecilia Samoisi)
Mauritius’ beverages major Phoenix officially presented its financial statements yesterday for the year ended June 30, 2014, which showed an increase in profit before tax at group level by 171.8% to Rs 712.04 million while profits at company level increased by 17% to Rs 269.8 million.
Meanwhile, group turnover for the year increased by 7.1% from Rs 4,501 million to Rs 4,820 million.
Phoenix Beverages Limited (PBL) attributed the increase in profits mainly to the disposal of its entire interests in its associated company in Madagascar last December.
Moreover, the sum of Rs 289.1 million realized from the stake sale in Madagascar enabled Phoenix Beverages to pay off all its debts, including taxes and duties, which altogether cost the company around Rs 2 billion this year.
Furthermore, the stake sale in the Madagascar company not only benefited PBL in the form of increased profitability but it also contributed to a fall in the group’s gearing ratio from 13% at the end of June 2013 to nil as at June 30, 2014.
Losses for the year from discontinued operations for the group narrowed by -41.7 % to Rs 76.0 million compared to Rs 130.2 million for the same period last year.
Total sales volume for the year ended June 30, 2014 has increased by 3.2%, with beer sales decreasing by 1.1%, while soft drink volumes increased by 4.8% and water sales by 6.5%.
On the other hand, Phoenix Reunion also registered a dip of 2% in profits to Rs 7.9 million for the year ended June 30, 2014, compared to Rs 8 million a year ago.
The reason behind this decline in profit from Reunion is mainly attributed to the highly competitive and sophisticated market on that island, where since fresh regulations in January 2013, Phoenix Beverages Ltd has had to pay more taxes compared to local operators.
During the press conference for the results announcement, Bernard Theys also declared that PBL is adopting different business strategies to increase its profit share, especially covering the rejuvenation of brands within their existing portfolio.
This rejuvenation most notably covers Malta and Guinness. Besides, the company is developing new products in the beer category, looking for adding on new categories of products for more health conscious consumers; and finally, expanding presence at the regional level, notably in Madagascar.
Further, in order to acquire a larger share of the soft drinks market, the Phoenix Group acquired the popular Eski brand of soft drinks at the start of the month.
“Our sound financial health allows us to continue the distribution of this popular drink, for which many Mauritians have a soft corner in their hearts,” concluded Bernard Theys.
- By Marie-Lorry Coret and Cecilia Samoisi
Phoenix Beverages Limited (PBL):
Phoenix Beverages Limited ranks amongst the top companies of Mauritius as a leading beverage company.
Established in Mauritius since 1960, it has been listed on the Stock Exchange of Mauritius since 1993.
PBL was born of the strategic merger of Phoenix Camp Minerals and Mauritius Breweries Ltd whose flagship brand, the Phoenix Beer, was launched in 1963. Since then, it has become the preferred beer of Mauritius.
Source: Company Website