No decision has yet been taken with regard to the setting-up of a fourth
production unit, owing to lengthy negotiations with the government authorities
and problems with regard to the choice of a suitable site.
A participation decree promulgated in January 1977 implies that by the end of
1978, at the latest, 60% of the share capital of enterprises in the brewing in
dustry must be in local hands.
The demand for beer in Ghana was substantially in excess of supply. Foreign
exchange for the necessary investments was only allocated to Kumasi Brewery
Ltd. to a very limited extent.
The production capacity therefore remained inadequate to meet the demand;
it was only possible to achieve a small growth in sales.
Earnings were approximately at the same level as in the previous year.
The profitability of Sierra Leone Brewery Ltd. in Sierra Leone was seriously
affected because it was not permissible to pass on the higher production costs
in the consumer price. Earnings were therefore substantially lower than in the
previous year.
If government approval for adequate adjustment of the selling prices should
fail to materialize, it is not impossible that production will have to be curtailed.
In Cha_d_tbere was again a growth in the sales of Brasseries du Logone S.A. The
profit was considerably higher than last year.
Good progress was made with the construction of the brewery in the capital
N'Djamena.
The sales as well as the earnings of Brasserie de Brazzaville S.A. in the People's
Republic of Congo increased as compared with the previous year.
As this enterprise lacks the finance to be able to expand, the realization of the
plan for enlargement of capacity has been made dependent on government
approval for implementation of a price increase.
Brasseries et Limonaderies du Rwanda 'Bralirwa' S.A.R.L. in Rwanda managed
to achieve a substantial increase in the sales of both beer and lemonade.
There was a rise in profit.
Sales by Brasseries et Limonaderies du Burundi 'Brarudi' S.A.R.L. in Burundi
were at a higher level. Owing to the cost increases which could not be passed
on, or only to a partial extent, the earnings remained approximately the same as
in the previous year.
In Zaire the transfer of control over Brasseries, Limonaderies et Malteries du
Zaïre 'Bralima' S.A.R.L. and Bouteillerie de Kinshasa 'Boukin' S.A.R.L. to the
original shareholders took place early in the financial year. The 'Bralima' group
operates five breweries and three lemonade factories.
The lack of foreign exchange was the reason for an irregular and insufficient
supply of raw and auxiliary materials as well as of spare parts, as a result of
which optimum use of the production capacity available was not possible.
The operating results were consequently disappointing.
As long as these unfavourable factors continue to exist, the continuity of the
enterprise is not assured.
This prompted us to make a corresponding provision against the net asset value
as established by us after the return.
Sales of Amstel beer brewed under licence by South African Breweries Ltd. in
South Africa showed a satisfactory trend.
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