Hostile operating environment undermines Sechaba profitability

Monday, July 06, 2015

Sechaba Brewery Holdings Limited says the hostile operating environment occasioned by the ever-rising alcohol levy and traditional beer regulations continue to impact on the brewer’s profitability.

Announcing the 2015 full-year results on Friday, Kgalagadi Breweries Limited (KBL) Managing Director, Johan De Kok said for the first time the alcohol levy is now higher than the official excise cost as it stood at P183.3 million as at December 2014.

De Kok also indicated that another increase in the levy is anticipated during the current financial year and that consultation and engagement with government is on-going.

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