During its 61st Annual General Meeting held on Wednesday 3rd July 2024, Shareholders of the Sierra Leone Brewery Limited have unanimously appointed new Board of Directors, re-elect Directors retiring by rotation, fix the remuneration of the Directors and receive the audited financial report ended 31st December, 2023.
Speaking on behalf of the Board, the Chairman of the Board of Directors Mr. Ludovic Auvray started by welcoming all the shareholders to its 61st Annual General Meeting of the Sierra Leone Brewery Limited.
”Let me use this opportunity to introduce myself as the newly appointed chairman of the Board of Directors of the Sierra Leone Brewery,” he informed their respectable shareholders, adding by recognizing the immense contributions of his predecessor. He further informed shareholders that 2023 was a challenging year for the Sierra Leone Brewery Limited. He mentioned further that the country’s GDP growth rate was about 2.7% inflation averaged about 49% and the average exchange rate for the year was about 58% higher than the 2022 average.
”We faced a lot of socio and political tension before and after the general elections,” he stated that, stating further that their local products continue to face stiff competition from imported brands due to the lower rate of excise duty on imported alcoholic beverages. He emphasized that, this continues to affect their performance and therefore slowdown the return on their large investment made from 2017 to 2019. Overall, he stated that 2023 performance fell below plan due to a combination of external and internal constraints. He added that, their net revenue grew by 43% from three hundred and four million leone in 2022 to four hundred and thirty-four million leone in 2023. He emphasized that, despite a 10% decline compared to last year, their revenue increases due to favorable price and mix impacts in both markets. He disclosed that their total cost rose by approximately 40% driven by higher input costs, increased energy expenses, a one-off RPM deposit obligation adjustment, machine restoration through service level agreements and costs Associated with their international people development agenda. He further disclosed that they record a loss Le 250.5 million mainly due to significant financing costs, adding that, this represents a 14% improvement compared to last year. He further disclosed that, the company’s total liabilities exceeded its total assets by about Le 619.2 million, primarily due to the over 58% depreciation of the leone.
” The advent of the 2024 Financial Act presents a formidable challenge for us as it erodes the competitive edge we once enjoyed over imported beverages, despite their extensive engagements with governmental bodies,” he disclosed further, stating that, this shift places substantial strain on the long-term viability of their enterprise. Despite these challenges, he stated that, there are glimmers of optimism on the economic front with projected real GDP growth for the year surpassing the previous year’s rate, albeit modestly.
In accordance with Section 308 of the Sierra Leone Companies Act, 2009 of Sierra Leone, Messrs Moore Sierra Leone was unanimously reappointed by shareholders as auditors of the Sierra Leone Brewery Limited.
