Sierra Leone: Heineken-owned Sierra Leone Brewery Limited recorded a net loss of SLL 3.7 billion in 2005 against a net loss of SLL6.8 billion year-on-year

The Managing Director (MD)of Heineken Central Africa, who is also in charge of the Sierra Leone Brewery Limited (SLBL), Mr. J.N Ferrand disclosed August 16 that their company has recorded a net loss of SLL 3.7 billion in 2005 as against a net loss of SLL 6.8 billion in 2004, Awarness Times posted August 18.

Mr. Ferrand made this revelation during the company’s Annual General Meeting (AGM) held at the British Council Hall, Tower Hill in Freetown, while reading the company’s report and financial statements to shareholders for the year under review (2005).

According to the M.D, the company achieved a gross turnover of SLL 26.5 billion, an increase of 24% over the figure of SLL 21.0 billion achieved in 2004, adding that despite these gains, the company recorded a net loss of SLL 3.7 billion in 2005.

These results, he went on to state are a true manifestation of the very harsh and difficult operational and macro-economic environment in the country.

The SLL 3.7 billion loss he said included charges for: sorghum development, the cost of implementing the Information System for Heineken Africa (ISHA), unfunded retirement benefit for the last ten years and write off of obsolete items including un-useable bottles, plastic creates and raw materials for the production of cheer lime shandy.

Mr. Ferrand said although the operational results in 2005 shows an improvement over 2004, he said they are however very mindful that their job is yet to be completed. The M.D. therefore craved the patience and indulgence of shareholders, while seeking their support in that pursuit.

Speaking further, Mr. Ferrand said a recent research conducted by the company revealed an overall decline in brewed products marketed in Sierra Leone, but was pleased to inform shareholders that the SLBL sales volume grew by 7.3% in 2005 adding that the company therefore gained a substantial market share from other imported brands during the year.

Meanwhile, Messrs V.L Thomas, K.E Davidson and Jon Potter are re-elected as Directors of the Board following the resignation (from the Board of Directors), of Messrs. L. A. During, E. Ubalijoro and A. Barnes, in accordance with the provisions of the company’s Articles of Association, after a motion was passed.

It could be recalled that sequel to the resignation, Mr. J.N Ferrand was appointed to fill one of the vacancies existing on the Board.

The report of the Independent Auditors KPMG, to the members of the SLBL state in part: “We draw attention to note 21 the financial statement which indicates that the company incurred a net loss of SLL 3.7 billion for the year ended 31 December, 2005 and, as that date, the company’s total liabilities exceeded its total assets by SLL 12 billion. These conditions, along with other matters as set forth in note 21 to the financial statements indicate the existence of material uncertainty which may cast significant doubt on the company’s ability to continue as a going concern.”

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