Phoenix Beverages half-year sales at Rs 2.74 bn but profits fall 53% to Rs 225 mn
On the positive side, the group has succeeded in controlling debt levels, with reduction of group indebtedness resulting in a fall in finance cost from Rs 13.2 million to Rs 3.2 million for the period under review. (Image: Global Village Directory)
Mauritius’ beverages major, Phoenix Beverages Limited, has registered an increase in revenue by 5.1% to Rs 2,743 million for the 6 months ended December 31, 2014, even as profits fell a whopping 53% to Rs 225.75 million from Rs 479.57 million in the year-ago period.
According to financial highlights released on the Stock Exchange of Mauritius (SEM), of this Rs 2,743 million revenue, a majority of Rs 2,488 million came from domestic operations whereas the remaining Rs 255.2 million came from overseas operations.
The total sales volume for the 6 months to December 31, 2014 is up by 2.8% when compared to the corresponding period last year, according to the corporate results statement.
Moving on to profitability, earnings before interest and taxes on continuing operations increased by 20% from Rs 229.1 million to Rs 275.0 million on the back of both higher revenue and cost containment. However, net profits fell a whopping 53% to Rs 225.75 million from Rs 479.57 million in the year-ago period.
Furthermore, we note a decrease in group net cash generated from operating activities, from Rs 97,226 million at December-end 2013 to Rs 77,494 million as at the end of last year.
On the positive side, the group has succeeded in controlling debt levels, with reduction of group indebtedness resulting in a fall in finance cost from Rs 13.2 million to Rs 3.2 million for the period under review.
On the negative side, the depreciation of the Euro to the Mauritian Rupee has adversely impacted the results of subsidiary, Phoenix Beverages Overseas Limited, which sustained exchange losses of Rs 13.1 million for the 6 months of the financial year.
The economic environment is expected to remain highly competitive both in Mauritius and abroad, the board noted, adding that the weakening of the Euro vis-à-vis the Mauritian Rupee if sustained, is expected to further negatively impact export activities.
However, the board added that, despite the challenging conditions, the company would keep on growing its business by investing in its brands, developing new product range and ensuring strong market execution,
“In the same vein, we will continue to review and monitor our sustainability goals as part of our continued corporate growth strategy,” concluded the board, on future outlook for the beverages major, as it enters the next 6 months of its fiscal ended 30 June 2015.
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.