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Cameroon – Finance: The Société Anonyme des Brasseries du Cameroun announces a € 52 million repositioning plan

The Société Anonyme des Brasseries du Cameroun announces a € 52 million repositioning plan
Written by Deckson N.

The Société Anonyme des Brasseries du Cameroun will launch an investment plan of 52 million euros (34.1 billion CFA francs), it was learned from an internal source, explaining the reasons for the non-distribution of dividends, for the 2016 financial year.

The idea is to massify the cash flow of the company to invest everything. At a time of possible devaluation, a recurring debt of 70 million euros and a net profitability of 4%, largely insufficient to invest and pay dividends. We had to make a courageous and united choice, that of a plan of reconquest to regain our place of leader before it is too late, “he explained.

The company, which is listed on Euronext Paris, ended the year 2016 with a net profit of CFAF 13.3 billion. But the latter is down 29.62%, compared to the 18.9 billion CFA francs of the previous 2015 financial year. Moreover, after 2015, marked by a positive change in its cash position (+3.4 billion CFA francs), SABC started fiscal year 2017 with a negative cash position of CFAF 27.8 billion as of December 31, 2016.

This negative cash position increased to 45 billion CFA francs at the end of the first quarter of 2017.

It consists essentially of short-term debt (spot credit) under the threat of a sharp increase in interest rates, Interest rate risk is all the more serious in a context of scarcity of liquidity in the sub-regional financial market and possible devaluation, “the group said.

The solidarity of the shareholders will not suffice, however. Despite a recovery in sales, particularly in the last month of the first quarter, and an improvement in the net margin per hectolitre, SABC started the year with a 25% decline in net profit to CFAF 6 billion, compared to CFAF 8 billion. FCFA as of 31 March 2016.

In addition, the group which is engaged in the production of beers with products predominantly local, wants to benefit from a more accommodating tax system. Its general management has received the discharge for the deployment of a three-year plan, the objective of which will be to reverse the figures, which, excluding the first quarter of 2017, have continued to decline since 2015, with the notable exception of wage conditions .

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Deckson N.

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