REPORTING CONTEXT ABOUT US OUR OPERATING CONTEXT OUR PERFORMANCE OUR LEADERSHIP GOVERNANCE OUR FINANCIAL STATEMENTS SHAREHOLDERS' CORNER BUSINESS OUR BUSINESS MODEL What we do and how we do it Capital Inputs Capital Outputs Our Operating Context Manufactured Capital Our Four production facilities in Mauritius and Réunion Island, equipment, warehouses, trucks and offices. Manufactured Capital Intellectual Capital The skills and experience of management and team members, and the expertise of our brewing team members. Our strong brands and proprietary recipes. Intellectual Capital Human Capital Our 1 700+ valued team members in Mauritius and Réunion Island. Social and Relationship Capital Natural Capital Our operating context • International tourism is starting to recover, but remains below pre-pandemic levels. The forecast rebound in GDP growth for 2022 is heavily reliant on tourism growth. • The significant rise in inflation during the year impacted the cost of raw materials and production, and affected consumers’ disposable income. • Challenges in the global supply chain continue to affect the timing and cost of imported inputs, and we have increased stockholdings in response. • The depreciation of the MUR against other currencies increased import costs and there was also a shortage of foreign currency. Our strategy guides everything that we do – from the allocation of resources to the way that we conduct our operations and activities and deliver on our outcomes. PROCUREMENT AND RESOURCE OPTIMISATION Our procurement process aims to optimise resource use and maximise value creation through training and development, supplier management and negotiation, analytical skills and enhanced communication. Outputs We produced 2.3 million hectolitres of alcoholic and non-alcoholic beverages during the year in Mauritius and Réunion Island, and imported 32 000 hectolitres of products for resale. We supply more than 300 different beverages to over 10 000 wholesale and retail outlets across Mauritius and Réunion Island with our fleet of more than 140 trucks. Refer to pages 50 to 76 for the detailed analysis of capital outcomes Value Propositions Customers • Reliable supply of quality beverages. • Diversified portfolio for everyone and every occasion. Team members • Competitive remuneration and benefits. • Support for health and wellness. • Opportunity to develop skills and experience. Shareholders • Consistent growth in shareholder returns. • Responsible and experienced leadership and management. Society • Promotion of responsible consumption and disposal. • Investment in communities supporting health, education, sports and social upliftment. • Direct and indirect job creation and contribution to the government fiscus through tax and excise payments. Human Capital Social and Relationship Capital More than 10 000 customer outlets supplied in Mauritius and Réunion Island. Strong relationships with authorities, suppliers, partners and consumers. International partnerships with Coca-Cola, Suntory, Diageo and Grand Chais de France. Collaborative engagements with government, NGOs, communities and industry players. Natural Capital Key natural inputs for our beverages, including fresh water, GMO-free hops and malt, fruit pulp, sugar and CO₂. Electricity throughout the business and heavy fuel oil and coal for heating in the production process. Financial Capital Financial resources available to fund our activities including equity and debt funding. Financial Capital Production We produce a wide range of alcoholic and non-alcoholic beverages from three production plants in Mauritius and one in Réunion Island. Bottling and packaging We bottle more than 300 different types of stock keeping units (SKUs) under our own and international brands. Sales and distribution We distribute our beverages to wholesale and retail customers throughout Mauritius and Réunion Island. Consumers can also buy directly through our online retail platform and we opened three physical shops during the year. Recycling We use recyclable material for most of our product packaging and collect around 45% of our used PET packaging to be recycled and reused for internal operations and external initiatives. Our recycling operations are outsourced. Revenue split Nature of expenses Mauritius Marketing and selling Employee benefits Réunion Island Others Raw materials and consumables Export Depreciation and amortisation Excise and other duties 16% 82% 2% 4% 31% 13% 6% 12% 34% Our model serves to create value for all stakeholders 21 20 Phoenix Beverages Limited Integrated Report 2022 Phoenix Beverages Limited Integrated Report 2022
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