KBL has suffered a revenue loss of P1.3 billion- Madisa
Following the ban on alcohol sales which lasted for two months, the country’s largest brewery, Kgalagadi Breweries Limited (KBL) has been left counting losses.
A ban on alcohol sales was imposed on June, 28th, and attempts by KBL to have the decision set aside by the court did not bear fruits as the matter was not considered urgent.
KBL Head of Corporate Affairs, Masegonyana Madisa told The Voice this week that during the nine weeks of no trade, KBL lost an estimated P463 million in revenue.
In 2020, Madisa said the brewery lost more than P500 million in revenue while an an additional P340 million was lost during the January – February ban this year.
Since the initial ban last year, KBL has suffered a revenue loss of P1.3 billion, Madisa has revealed.
The loss in revenue for KBL meant the government also lost on key revenue through excise and levies which Madisa estimates to be around P121 million.
“In 2021 alone, the alcohol industry was closed for 126 out of 248 days, which means trade was closed longer than it was opened this year,” said Madisa, adding it would be a long road recovery but they are determined to work towards growing the economy and reinvesting in the economy.
While the company has mulled over retrenchments due to hardships it has faced due to the close-open-close of the alcohol industry, Madisa said a decision will be made when the State of Emergency (SoE) elapses at the end of this month.
“With the SOE coming to an end, as with every business, any major developments that hinder business growth, eroding shareholder value, and affecting the sustainability of the business, may force the company to restructure, which may or may not include retrenchments,” he said.
Meanwhile, Madisa said the first days of alcohol trading were promising, though it was too early to quantify the sales.
“Unfortunately, we do not have the numbers, but we expect a good turnout. And while we appreciate the support and enthusiasm of our valued customers and consumers, we expect the strictest adherence to existing Covid-19 protocols and encourage them to drink responsibly.” Madisa advised.