National Breweries Plc
is the Zambian based producer of traditional African beer under the banner of Chibuku which is sold as Chibuku Shake Shake in the carton pack and Chibuku Super, a pasteurized, longer shelf life product that is sold in PET. The business was founded in 1955 by industrialist Max Heinrichs (Heinrich’s Syndicate Limited), starting from the copper belt town of Kitwe and by 1960 had expanded to supply all the urban townships of the country. The business developed as part of the Lonrho non-mining businesses until it was purchased by SABMiller and listed on the Lusaka Stock exchange in 1999. The company has five breweries in Kitwe, Ndola, Lusaka, Kabwe, and Chipata, of which only the two at Kitwe and Lusaka are operational.
SUMMARY PERFORMANCE
It was a turbulent year for National Breweries as the Company underwent a change of control. The transaction to purchase 70% of shares in the Company by Delta Corporation Limited of Zimbabwe settled on the Lusaka Stock Exchange on 28th December 2017. It was one more significant milestone in a long history for the Company, which has seen a number of changes in ownership in both the public and private sectors. We are confident that it will continue its journey as the Company behind one of Zambia’s best-known brand names, Chibuku… As National Breweries enters a new era under the ownership of Delta Corporation Limited, we remain optimistic that its growth potential will be realized, capitalizing on the turnaround strategy introduced by its previous shareholders, and leading to the continued growth of this iconic Company.
Valentine Chitalu; Board Chairman;
2017 Annual Report
Schweppes Holdings Africa
through its main operating entity Schweppes Zimbabwe Limited is a manufacturer and distributor of non-carbonated, still beverages under license from The Coca-Cola Company. The product portfolio includes cordials, fruit juices, and bottled water. The Company vertically integrated into Beitbridge Juice Company which processes fruit juices mainly oranges and Best Fruit Processors which produces tomato paste for both local and export markets. The business recorded an improved outturn for the year to December 2017, with group revenue of US$93,3 million up 4% and beverage volumes increasing by 1%. The performance in the quarter to March 2018 indicated a significant upturn in beverage volume which increased by 39%, reflecting the strong demand since October 2017. The processing divisions continue to be affected by the shortages of processing materials. The business is exploring opportunities to export Mazoe Orange Crush and juice drinks into the region with the support of The Coca Cola Company. The company is involved in a community development project in partnership with other donors to create sustainable income streams for small scale farmers. The Shashe Citrus Outgrower Scheme in Maramani Communal Lands, Beitbridge District has engaged 200 families that have established a 90-hectare orange plantation. Given the long gestation period of citrus plantations, the farmers have been introduced to inter-row cropping to grow other crops such as sugar beans or vegetables between the orange trees. The partners provided the capital, extension services and monitor performance of the farmers. A total of 270 tonnes of oranges were delivered to the Beitbridge Juicing Company during the 2017 season. The output is expected to reach 7 000 tons by 2020. Schweppes Holdings Africa is replicating these out-grower schemes for tomatoes and other fruits to supply into both Beitbridge Juice and Best Fruit Processors.
Nampak Zimbabwe
was created by the merging of the packaging-related entities MegaPak, Hunyani and CarnaudMetalbox (CMB) in 2014 with the new entity taking over Hunyani Holdings’ stock exchange listing. The company reported a significantly improved financial performance for the half-year to March 2018 with revenue growth of 23% and trading income rising by 125% to US$5,0million. The Metals and plastics packaging businesses are benefiting from the volume recovery in the beverages sector. The balance sheet is strong with significant cash resources. There are, however, constraints in meeting customer orders due to delays in foreign remittances. Initiatives are underway to increase exports to generate hard currency to cover the import requirements.
African Distillers Limited
African Distillers Limited is a public quoted company whose core business is the manufacture, distribution, and marketing of branded wines, spirits, liqueurs and ciders for the Zimbabwean market. The associate continues to register growth in both volumes and financial results. The demand for its products remains firm buoyed by favorable pricing and the reduction in direct imports. There were supply gaps on certain product ranges which require imported ingredients due to delays in paying foreign suppliers. The company has supported the Reps Theatre in the last 10 years through sponsorship of the annual awards ceremony which seeks to recognize and reward talent and commitment of the volunteer corps. The awards, known as the AFDIS Reps Awards are the highlight of the Reps community and provide armature artists and school students a platform to showcase their theatrical talent. This support has allowed talented actors to breakthrough onto the international theatrical arena.
