Paradise Beverage records mixed performance in Fiji and Samoa operations
6 May, 2019, 7:30 am
A MIXED performance was recorded in Paradise Beverage’s two businesses in Fiji and Samoa for the 2018 financial year.
While Fiji posted a strong double-digit profit growth before income tax of 12.1 per cent to $17.6million despite the two unfortunate fires, Samoa, on the other hand, recorded a significant loss before income tax of $5.0 million – attributed to a 40 per cent loss in domestic beer market share to the competition.
The group recorded profit before income tax of $12.7m compared to $16.6m for the prior period, reflecting a 23.5 per cent decrease.
Profit for the year after income tax was $12.2m, compared to $14.7m for the prior period, noting a 17.0 per cent decrease.
In Fiji, group chairman George Forster said total volumes increased by 5.5 per cent to 2.538m nine litre cases last year from 2.406m cases in 2017.
He reported beer sales volumes decreased by 1.1 per cent to 2.008m nine litre cases in 2018 from 2.031m nine litre cases in 2017, with exports increasing by 60 per cent and domestic decreasing by 2.8 per cent.
In the company’s 2018 annual report, he reported that alcoholic ready to drink(ARTD) volumes continued its solid double-digit growth at 51.9 per cent, recording sales of 0.465m nine litre cases in the current period, versus 0.306m in the prior period, with Joskes Brew gaining considerable market share.
Mr Forster said total spirit sales also grew, with volumes increasing by 6.5 per cent to 0.065m nine litre cases in 2018 from 0.061m in 2017, as a result of exports increasing by 43.5 per cent and domestic sales decreasing by 20.5 per cent.
He said an increase in sales revenue of 14.5 per cent to $83.3m was driven by total volume increase, favourable intra-brand volume mix shift to ARTD and price adjustments taken during the year.
The profit before income tax increased by 12.1 percent to $17.6m compared to $15.7m recorded in the prior period.
In Samoa, total volumes decreased by 4.9 per cent to 1.055m nine litre cases in 2018 from 1.109m cases in 2017.
Beer sales volumes decreased by 23.1 per cent to 0.466m nine litre cases in 2018 from 0.606m nine litre cases in 2017, with exports increasing by 39.7 per cent and domestic decreasing by 42.1 per cent mainly driven off the back of competition.
He reported that soft drink volumes increased by 8.0 per cent to 0.542m nine litre cases from 0.502m in the prior period, driven by aggressive market execution activities.
Its ARTD beverage range was launched in December 2017 with the company selling 0.047m nine litre cases in 2018.
He said sales revenue decreased by 11.7 per cent to $22.7m, with the domestic beer volume shortfall being the key driver.
The business made a loss before income tax of $5.0m compared to profit before income tax of $0.9m in the prior period.