While releasing results for the six months ending
He pointed out that excise duty on Senator Keg had an impact on the company's revenue since the volume of sales dropped by 85 percent, with 3,000 outlets having stopped selling the brand.
"Our gross profit increased by nine percent and our profit after tax in H1 was Sh4.161 billion up four percent. The way I feel about that is that it was a satisfactory performance given the challenges that we faced not only on the Senator Keg but also on our
He expressed optimism of the company doing better in the next financial year.
"We are in good shape to have a decent H2 and record satisfactory overall performance in the overall financial year," he said.
The Group's Finance Director
"What this means is that for a sizable proportion of those outlets, the businesses become increasingly non-viable. We have already seen a number of people shift their businesses elsewhere and a number of outlets have already closed and that makes it increasingly difficult for us to continue with our business," she said.
"However, as you would expect, we are fighting on all fronts. We are looking at what we can do to fast forward innovations to provide those outlets and others with other products targeted to emerging consumers."
According to Barnes, in
"We continued with our strategy of investing ahead of growth in our brands, increasing our selling and distribution costs by 20 percent compared to last year and investing in new marketing campaigns to support our brand portfolio," she stated.
She explained that a number of campaigns and initiatives had a part to play in the increasing of the company's revenue.
"These campaigns included the region's biggest TV reality show,
"Within our spirit portfolio, campaigns included the Johnnie Walker Red Label "Step Up" campaign which was enhanced by the inaugural "Love Whisky festival" in
She stated that the cost of sales declined by one percent due to a reduction in raw material costs and the implementation of initiatives to optimize production processes.
"Administrative expenses grew by 26 percent as result of the impact of one-off costs related to the recent organizational restructuring, as well as incremental investments to streamline back office processes in
During the period, net financing costs remained broadly flat and profit attributable to shareholders improved by five percent to Sh3.9 billion.
Most Popular Stories
- Dmytro Firtash, Ukrainian Billionaire, Arrested in Vienna
- Obama, Ukraine Discuss Russian Incursion in Crimea
- Koch Brothers Step up Anti-Obamacare Campaign
- FDIC Sues Big Banks Over Rate Manipulation
- Obama's Overtime Initiative Praised, Condemned
- Liberty Media Drops Sirius Bid
- Republicans Warn Obama on Immigration
- West Readies Harsh Sanctions Against Russia
- Calumet Photo Files for Bankruptcy
- Uli Hoeness, Bayern Munich President, Gets Prison for Tax Evasion