Annabelle Degroot: Zambrew Finance DirectorFinancial Review
The first half of the 2015 financial period has been particularly challenging. On 1 January 2014, the business was obliged to take a 16% price increase on Clear Beer to reflect the 50% increase in the excise rate from 40% to 60% as announced by the Government in the 2014 budget. The unprecedented price increase impacted Clear Beer volumes as anticipated and we saw a 23% decline in total Mosi and Castle volumes in the period as the cost of our beer became out of reach for many of our consumers. This has been exacerbated by tough economic conditions leaving our customers with less cash in their pockets and further impacting demand. As a result of the currency depreciation in the first quarter, the Government introduced tight monetary policy conditions. This has increased interest rates, further reducing the disposable income of the average consumer.
HY 2015 financial results