The Seychelles Breweries has announced a 35% increase in its trading profit, which has hit a R50.1 million margin this year.

The growth in profit, attributed to increased sales and effective cost controls sanctioned by the company across its business, was announced by the company's Board of Directors Chairman, Mr David Hampshire, to more than 400 shareholders who attended the company's Annual General Meeting held at the International Conference Centre on  Saturday October 19.

Announcing that overall sales had gone up by 7% in comparison to last year, Mr Hampshire reported that beer sales had shot up by 3% while soft drinks had realised a 10% increase with Eku and Coca-Cola brands of products recording the highest growths.

In line with its policy to increase returns to shareholders, the Chairman announced the company had declared an 11% increase in dividend allocations up from 1.40 in 2001 to 1.55 per share with a staggering total of R49,530,000 this year.

To mitigate effects of currency depreciation and foreign exchange shortages, which Mr Hampshire said posed a major threat to continued business profitability of the

company, SeyBrew has raised its provision for potential foreign exchange fluctuations to R20 million, up by an additional R10 million. Mr Hampshire said the two factors were a reason to the prudent approach to the awarded dividend increase.

Despite significant difficulties, the Board Chairman informed the shareholders that their company had made some good progress in a number of areas during the year which he exemplified by citing the overhauling of one of its packaging lines, an 8% salary review increment for its workers and implementation of a computerised accounting system.

Similarly, the brewery has during the year contributed actively towards the anti-alcohol abuse campaigns and has continued with its policy of providing opportunities for staff through training courses and overseas attachments, the shareholders were told.

While foreign exchange remained the key limiting factor in the future of the company, Mr Hampshire said that new negotiations were in progress with the government on a plan to assist the company obtain enough forex to facilitate its operations without disruptions.

He however added that the company had already managed to obtain some foreign exchange from the Central Bank with which it would import a quantity of green bottles to improve deliveries on lager while it needed urgent replacement of some of its plant and equipment and import much needed soft drinks and amber bottles to meet market demands.

During the meeting, newly appointed managing director of the company, Mr Andrew Richardson, was introduced to the shareholders while Mr Hampshire was re-elected as Chairman of the board.

Mr Richardson takes over the helm from Mr Patrick Dousset, who has resigned from both Seychelles Breweries and Guinness International.

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