Annual Reports

The economic environment continues to deteriorate and this increases the overall risk of doing business. The political environment, although peaceful, remains turbid. The general election held in July 2018, though peaceful, was contested and did not receive the full endorsement of the international observer missions. The character of the current administration was severely dented by the military interventions in quelling the postelection demonstrations of August 2018 and suppressing the violent reactions to fuel price increases in January 2019

The economic environment continues to deteriorate and this increases the overall risk of doing business. The political environment, although peaceful, remains turbid. The general election held in July 2018, though peaceful, was contested and did not receive the full endorsement of the international observer missions. The character of the current administration was severely dented by the military interventions in quelling the postelection demonstrations of August 2018 and suppressing the violent reactions to fuel price increases in January 2019

The principal risks facing the Group and considered by the board and group management committee are detailed below.
These are not the only risks facing the Group. There may be additional risks not currently known to us or that we currently deem to be immaterial which may materially adversely affect the business, financial condition or results of operations in future periods.

Following the conclusion of the combination of SABMiller and AB InBev in October 2016, the Company is now an associate of the new AB InBev Group

Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) was down 10% on prior year versus a 14% decline in
operating income reflecting a focus on fixed cost management. Finance income has benefited from the net cash holding position throughout the year.

Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) was down 10% on prior year versus a 14% decline in operating income reflecting a focus on fixed cost management. Finance income has benefited from the net cash holding position throughout the yea

The second half of the year was particularly difficult with the festive period recording subdued performance. Continued investment behind our brands, production capacity, market execution and innovation worked to spur growth in sorghum beer and alternative beverages
maheu and dairy mix) which partly offset declines in lager beer and soft drinks.

The Group’s financial performance was very pleasing benefitting from a sustained focus on increased contribution of premium brands, improved productivity and margin expansion

Sparkling beverages grew by 26% driven by improved product availability following the commissioning of the Graniteside packaging line in August 2011. This growth will be supported by investment in a second PET line to be commissioned in Bulawayo ahead of the festive season.

The contribution of our premium brands and packages is steadily increasing and new products and packages were introduced, affording the consumer more choice. We made market share gains across all the beverage categories.

Capacity has been improved by the new 42 000 bottle per hour packaging line for lagers in Harare which was fully operational by the end of October 2009. In addition, the previously mothballed Zvishavane traditional beer brewery was brought back on stream with effect from 1 November and the Chibuku Shake-Shake was re-launched in October in the improved one FINANCIAL REPORTING

The first half of the year was dominated by a dramatic acceleration of inflation due to supply side constraints and increases in money supply. In the four months from October 2008 to January 2009 the acceleration continued and it became increasingly difficult to operate in a currency which depreciated rapidly.

Over the year there have been periodic production stoppages caused by a serious deterioration in the national supply of coal, water and electricity.