record profit growth for the Castel Group in 2023

record profit growth for the Castel Group in 2023
record profit growth for the Castel Group in 2023

(Agence Ecofin) – This performance was driven by unusual growth in income from non-ordinary activities. The 2024 performances are to be followed.

The Société de Limonaderies et de Boissons Refreshantes d’Afrique (SOLIBRA), whose main shareholder with 76.8% stake is BGI, a subsidiary of the French group Castel, announced a net profit of 15 billion CFA francs (24.69 million dollars) for fiscal year 2023. Although this is not the highest net margin level in the last ten years, it is the most robust growth (+1139%) over this period, compared to 2022 1.2 billion FCFA.

This performance was supported by an increase in sales. After a decline in 2022, turnover started to rise again, reaching its highest level of 311.4 billion CFA francs. This dynamism made it possible to contain an increase in sales costs which increased by 23.3 billion CFA francs compared to the previous year.

In addition, a drop in depreciation charges and almost stable financial charges enabled the company to achieve additional margin gains. It was thus able to end the year 2023 with a pre-tax profit of 11.3 billion CFA francs compared to around 3 billion CFA francs in 2022. But what really drove the growth in net profit was the level of results excluding ordinary activities. .

Solibra does not explain what makes up these non-ordinary activities, but in 2023, their contribution to the brewer’s revenues was 7.5 billion CFA francs. This is much more than the total performance for this indicator since 2014, according to data compiled by theEcofin Agency.

This year, Solibra announces dividends for its shareholders, including 18.6% free float. However, according to the stock market information platform Richboursethe very low dividend yield (3.24%) could deter investors.” In addition, Solibra will have to present more reliable indicators to its investors.

In particular, it will have to guarantee that net profit will continue to grow in a market that has become competitive with the arrival of Brassivoire, an alliance between the distribution specialist CFAO and the Dutch group Heineken. Furthermore, despite an increase in prices in 2024, the purchasing power of Ivorians continues to decline, weighed down by higher energy, food and even transport bills. However, we can expect an increase in sales in the first quarter, due to the African Football Cup of Nations effect.

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