REPORTING CONTEXT ABOUT US OUR OPERATING CONTEXT OUR PERFORMANCE OUR LEADERSHIP GOVERNANCE OUR FINANCIAL STATEMENTS SHAREHOLDERS' CORNER Borrowings and Gearing No new long-term bank loans were contracted at Group or Company level during the year as all capital expenditure was financed from operating cash flows. Group borrowings reduced by MUR 120.2 million from MUR 530.6 million to MUR 410.3 million, with Group gearing decreasing from 8.3% to 4.3%. The low gearing gives space for the Group for new investment opportunities in line with our strategy of diversifying our geographical reach. In total 34.1% of Group gross interest-bearing debt at financial year-end was denominated in Mauritian Rupees and 65.9% in Euros. Earnings and EBITDA Group net profit for the year decreased by 21.5% to MUR 416.8 million with our activities in Réunion Island contributing MUR 120.3 million (2021: MUR 75.5 million). The fall in Group profit is mainly attributable to the preliminary expenses incurred for the aborted acquisition of a UK-based company and the impact of the depreciation of the Euro on Phoenix Beverages Overseas Ltd. Group EBITDA remained in line with last year at MUR 1 071 million (2021: 1 079 million) and EBITDA at Company level increased 16.7% from MUR 783.6 million to MUR 914.4 million. From 2018 to 2022, Group EBITDA increased at a compounded annual growth rate of 4.1%. During the year under review, 23.9% of Group operating profit was derived from our foreign operations. Borrowings – MUR.M 0 200 400 600 800 1 000 2022 2021 2020 2019 2018 706 951 914 848 650 Profit – MUR.M 0 100 200 300 400 500 600 700 800 2022 2021 2020 2019 2018 474 632 445 531 417 Gearing (%) 0 5 10 15 20 2022 2021 2020 2019 2018 12.6 16.5 15.5 8.3 4.3 0 200 400 600 800 1 000 1 200 2022 2021 2020 2019 2018 EBITDA – MUR.M 913 1 064 961 1 079 1 071 FINANCIAL FINANCIAL CAPITAL Cash flow and cash equivalents Cash flow from operations at Company level decreased to MUR 738.9 million from MUR 868.8 million in 2021. Cash flow from operations at Group level was MUR 846.0 million (2021: MUR 1 054.3 million). Cash and cash equivalents have increased to MUR 386 million (2021: MUR 369 million). Group net profit Group net profit was impacted by: • Preliminary expenses incurred for the aborted aquisition of a beverage company in UK • Reduced contribution from our subsidiary Phoenix Beverages Overseas Ltd, as a result of exchange rate fluctuations • Increase cost of raw materials and logistics. Capital expenditure and depreciation The Group invested MUR 351 million in capital expenditure during 2022, which mainly relates to: • installation costs for the launching of our new Manawa craft beer; • acquisition of bottles and crates; • improvements in computer hardware and software. The substantial capital expenditure in the past five years demonstrates the Group’s commitment to further developing its production capabilities in line with our product and regional expansions strategy. Increase Decrease Increase Decrease Capital expenditure and depreciation – MUR.M 0 100 200 300 400 500 600 2022 2021 2020 2019 2018 291 466 517 306 275 333 351 365 291 279 Capital expenditure Depreciation 0 2 000 4 000 6 000 8 000 10 000 Closing cash Dividends paid Working capital changes Capital grants Finance cost Net loan paid Capex Overheads Taxes Materials Other Income Sales Opening cash 369 386 214 238 47 49 192 354 2 420 2 706 2 898 22 9 015 Cash Flow Highlights – MUR.M 0 500 1 000 1500 2 000 2022 Profit Income tax Finance cost Other Income Overheads Raw Materials Volume & price Excise taxes Turnover 2021 Profit 531 216 41 9 67 416 742 187 1 147 Net Profit reconciliation – MUR.M CONTINUED 75 Phoenix Beverages Limited Integrated Report 2022 74 Phoenix Beverages Limited Integrated Report 2022
RkJQdWJsaXNoZXIy MTcyNjcwMw==