adminConrad Mwanawashe Business Reporter
SCHWEPPES volumes for Mazowe and Minute Maid shot up to 6,8 million cases in 2013 from 2,5 million in 2009 with the group expecting volumes to treble by the end of this year.Total after tax profit grew to $3,2 million in 2013 from $1,9 million in 2009.
“The company has more than doubled volumes in the two brands and we expect that by 2014 the volumes will have trebled. We expect the trend to continue,” said Schweppes general manager for finance Mr Asere Shumba.
Mr Shumba attributed growth in volumes to the acquisition of new machinery that was required by the business.
The capital acquisition was financed by borrowings which grew to $12,1 million in 2013.
“The borrowing was a very courageous position taken by the team to acquire the hot fill technology at $15 million. It’s one of a few in Southern Africa. The acquisition has seen the results of the company improving,” said Mr Shumba.
Schweppes has built capacity through capital investments of more than $27 million over the past four years which included the acquisition of Beitbridge Juicing for $10 million.
BBJ’s primary business is fruit processing and juice blending as well as secondary manufacturing of cordials and other related by-products from the fruit processing.
“There are other supporting investments that are happening. Investment in plant and machinery amounted to $19 million over the four years. We spent $5,2 million on coolers, because we have brought in immediate consumption products such as Minute Maid which require refrigeration. We also spent $2,3 million on delivery vehicles. We spent $27 million in total on capital expenditure.”
The $27 million capital investment was funded through borrowings and from funds generated by the business.
“So what we have at the moment is a very much solid business ready to go forward.”
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