(Ecofin Agency) - Société de Limonaderies et de Boissons Rafraîchissantes d'Afrique (SOLIBRA), a subsidiary of the French group Castel with a 76.8% stake held by BGI, announced a net profit of CFA15 billion (around $24.69 million) for FY2023. This represents a robust growth of 1,139% compared to 2022, when the company reported a profit of CFA1.2 billion.

The strong performance was driven by an increase in sales. After a decline in 2022, revenue rebounded, reaching a record high of CFA311.4 billion. This momentum helped offset a CFA23.3 billion increase in cost of sales compared to the previous year.

Moreover, a decrease in depreciation and amortization charges, as well as relatively stable financial expenses, allowed the company to achieve further margin gains. As a result, Solibra was able to close 2023 with a pre-tax profit of CFA11.3 billion, compared to approximately CFA3 billion in 2022. However, what truly propelled the growth in net profit was the level of non-operating income.

Solibra did not specify the composition of these non-operating activities, but in 2023, their contribution to the brewer's revenue was CFA7.5 billion. This is significantly higher than the total performance for this indicator since 2014, according to data compiled by Ecofin Agency. This year, Solibra announced dividends for its shareholders, including an 18.6% free float. However, according to the financial information platform Richbourse, "the very low dividend yield (3.24%) could cool investors". Additionally, Solibra will need to present more reliable indicators to its investors.

The company will need to ensure that net profit continues to grow in a market that has become more competitive with the arrival of Brassivoire, an alliance between the distribution specialist CFAO and the Dutch group Heineken. Furthermore, despite a price increase in 2024, the purchasing power of Ivorians continues to decline, weighed down by higher energy, food, and transportation bills. However, an increase in sales can be expected in the first quarter due to the effect of the Africa Cup of Nations football tournament.