Sierra Leone Brewery has posted a massive loss of Le33.7billion (Le33,757,392,000.00) from its operations in 2014.
The beer brewer slipped by Le33.3billion from a Le363.1million profit in 2013 to a loss of Le33.7billion in 2014.
Net revenue dropped by 12.4% from Le63.9 billion in 2013 to Le55.9 billion, something that the Chairman of the Board, Boudewijn Haarsma attributed to “adverse trading conditions driven by the socio-economic impact of Ebola coupled with supply chain challenges.”
Sales volumes dropped by 13% over 2013 figures while the Cost of goods sold increased by Le682.5million from Le39.4billion in 2013 to Le40.1billion in 2014, with gross profit dropping by Le8.5billion from Le24.4 billion in 2013 to Le15.8billion in 2014. The results from operating activities also dropped from Le4billion in 2013 to a loss of Le11billion in 2014. The Net Financing cost increased by Le22billion from Le3.6billion in 2013 and the Chairman explained that this was “driven mainly by new loans and exchange rate movements.”
Chairman Haarsma disclosed that they invested a total of Le28.1billion into the business. He opined that “trading conditions will remain very challenging in 2015 as a result of the continued socio-economic impact of the Ebola disease, coupled with the suspended Iron Ore mining activities, difficult operating conditions for business, the proliferation of cheap imported beverages” adding these will all have a significant negative impact on the entire economy …”
Source: Awoko
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