Commonwealth Brewery's new Managing Director Hans Neven has reported that, thanks to "extreme care and monitoring of expenses", the brewery's financial performance was strong last year, with total revenue at the end of 2014 of $124.2 million, a climbing share price and $19.2 million in dividends. Both Neven and Chairman Julian Francis expressed optimism in connection to the eventual opening of the $3.5 billion Baha Mar development. Meanwhile, Neven foreshadowed a company-wide restructuring. Francis boasted that Commonwealth is now the third largest company on the Bahamas International Securities Exchange (BISX), with 51 stores in its retail division, 395 employees and more than 70 labels.
"Increasing competition in all different categories - beer, wines and spirits - is heating up the market," he admitted. "In order to retain and gain market share, we will over the next 12 months and beyond make serious investments in our retail stores, in technology and in our people".
"We have set aside funds for education and increased investing activities year over year by nearly 70 percent."
He looked forward to the next three years and beyond, forecasting "innovation with integrity" that would place the company in a solid position to serve the demands of what he termed "a high-end resort and financial services based economy." That innovation, plus the investment he identified, would position Commonwealth to satisfy the needs of existing clients, Baha Mar and several new Family Island developments in the pipeline.
Francis welcomed the new MD, Neven, whom he said brought "new vision, dedication to teamwork and high energy." On Baha Mar, Neven said, "the opening of Baha Mar holds great promise, and we wish the developers, investors and staff every great success. Neven delved deeper into the numbers, reporting that Commonwealth Brewery invested $2.9 million in 2014, mostly to prepare the company's future in equipment for production, distribution and retail.
"Financial performance was strong thanks to extreme care and monitoring of expenses, including a reduction in waste and an increase in recycling, both of which are ecologically important, reducing Commonwealth Brewery's footprint on a fragile environment," Neven said in his report. "Very significantly, Commonwealth Brewery Limited remained a debt-free company with $74.3 million in assets, an increase over the $70.2 million of 2013.
"Looking ahead, we are enthusiastic but also realistic. The total impact of value-added tax (VAT) introduced at 7.5 percent on January 1, 2015, is still unclear. We do know that it drives up local costs, but Commonwealth Brewery has committed itself to limit, as much as possible, its impact to our Bahamian consumers. An increase in license fees also contributed to the cost of doing business."
Neven also highlighted Commonwealth's accomplishments with respect to the Guinness brand: for the third year in a row, Commonwealth received the Guinness Excellence Award and was once again ranked as first of 12 breweries in the region.
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