The benefits of Brasseries du Cameroun declines

The net result of Brasseries du Cameroun, the subsidiary of the Castel group, has witnessed a total decline of 18.2 billion CFA (about 27.7 million Euros) over the last two years.

Turnover however progressed in 2013, despite aggressive competition and a decline in market share.

The fall in the benefits of the company, Société anonyme des brasseries du Cameroun (SABC) continues.

From 45.2 billion CFAF (about € 68.7 million) in 2011, net income totalled 26.9 billion CFAF in 2013 (EUR 41 million), a total decrease of about 18.2 billion CFAF (27.7 million Euros) on the two last years.

The action of the Cameroonian company, listed on the Paris stock exchange, was not fundamentally affected by this result, since its average price has remained around 850 euros over the period.

Progression

The subsidiary of the Castel group maintains its form, thanks to a Treasury that passed back to green, 4.5 billion FCFA (€6.8 million).

Turnover increased by 2.4% from 2012, to 329.1 billion CFAF.

"This increase was due mainly to the progress, although it varied depending on the products, sold volumes', notes the management report of the Board of Directors, valid June 11. The Cameroonian leader of the brewery industries has decided to distribute more than 25 billion CFA francs of dividends at the end of the year.

Apart from alcohols mix whose performance (90%) from the previous year is robust, the progression in other segments such as beers (1.1%), soft drinks (3.6%), water (5.2%), remains modest.

In question, "a downturn of the market on the one hand," and a strong aggressiveness of competition on the other hand, says the report.

Competition

The intensity of the competition between the players in the beer industry has impacted the commercial plan. "We have experienced a decrease in the market share of cars," acknowledges the subsidiary of the Castel group.

The most significant difference was observed on the market of soft drinks where the company loses almost 16 points to the benefit mainly to it competitor Source du Pays.

This competition is manifested by excessive pressure on prices, systematic promotion campaigns, the placing on the market of new products, not to mention the 'media battle.'

This context does not prevent Brasseries du Cameroun to be optimistic in 2014, projecting upward global sales. In late April, they were already greater than expected.