The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

Commonwealth Brewery’s top executive yesterday said supply chain woes had made trade “highly challenging” for some of its imported brands with such issues set to persist in 2022.

Jürgen Mulder, the BISX-listed Kalik manufacturer’s managing director, told Tribune Business: “All global supply chains were challenged in 2021, and we anticipate further supply chain delays as we move further into 2022.

“Unfortunately, on imported goods like wines and champagne, it has been highly challenging. However, I commend my planning and logistics team for their seamless, uninterrupted operations of our brewery. As a whole, our team throughout The Bahamas are looking forward to a successful and productive year.”

In unveiling its 2021 third quarter and nine-month results, Commonwealth Brewery had warned that global supply chain disruption would increase its costs by 10 percent over the remainder of that year as it sustains its return to profitability.

“Operating expenses have increased to $23m for the period (13 percent), which is in line with the increase in production to mirror the increase in consumer purchases,” it told shareholders.

“The current disruption of the global supply chain has resulted in increases to the cost of goods and production materials. The company anticipates that this disruption will result in approximately a 10 percent increase in cost over the remainder of the year. Commonwealth Brewery will continue to implement cost mitigation and other measures to maintain the profit margin.”

Aided by the economy’s continued re-opening and relaxation of COVID-19 restrictions, the vertically-integrated brewer, wholesaler and retailer turned the $766,965 comprehensive loss sustained in 2020’s third quarter into a $1.976m profit last year.

Up against relatively weak year-over-year comparisons, given that the 2020 third quarter was hit by multiple lockdowns and other COVID-related restrictions, Commonwealth Brewery’s 2021 third quarter sales rose by close to $7m or just over 29 percent, hitting $29.13m as opposed to $22.533m in 2020.

Hit hard last year by 2020’s tourism industry’s shutdown, rising unemployment and reduced incomes, plus restrictions on bars, restaurants and nightclubs, as well as alcohol sales generally, Commonwealth Brewery said that it “continued to experience strong growth in net revenue” through the 2021 second half.

Commonwealth Brewery has yet to disclose its 2021 fourth quarter and full-year financial results, but Mr Mulder said he anticipates they will be boosted by the continued tourism rebound based on trends from previous quarters.

He added: “To date, we have not released our 2021 fourth quarter financial statements, and therefore cannot disclose our 2021 sales volumes. However, our financial results for the first three quarters of 2021 have shown the resilience of Commonwealth Brewery and all of our team members.

“Due to the increase in The Bahamas’ tourism activity towards the end of the year, we have great optimism in our end of year sales outlook.”