Zambian Breweries Plc (LUSE: ZAMBREW) reported a 25% year-on-year decrease in net profit to K132 million in financial year (FY) 2014. Earnings per Share (EPS) came in at K0.24 (K0.32 in 2013):
The decline in net profits was primarily driven by:
Finance costs increased by 40% to K64 million.
Zambia Sugar experienced revenue growth of 4% year-on-year to K1.3 billion in FY 2014:
Growth in the revenue was driven by a 10% increase in soft drink volume, price cuts on their mainstream clear beer products and new 750ml bulk economy offering. This served to counter a 23% decrease in sales of Mosi, Castle and Carling Black Label.
Zambian Breweries’ stock price closed the year at K6, up 43% in 2014.
No dividend was recommended for FY 2014.
In their outlook for 2015, the company said:
Whilst GDP declined from 2013 levels of 6.5% to 5.5% in 2014, we have confidence in the growth prospects of our country’s economy, in spite of the deterioration in the CPI and exchange rate measures in the final quarter of the financial year. Government’s business agenda and continued investment in infrastructure projects will continue to spur economic activity and spur employment creation, which will in turn generate demand for our products. We will remain focused on providing affordable and quality products to our loyal customers while remaining competitive and attracting new customers.
Trying to decipher this puzzle that is Zambia by using a variety of publicly available data (structured and unstructured) in conjunction with my own skill/experience. * * *