Commonwealth Brewery Limited (CBL) revealed in its latest annual report that it suffered business interruption and damage costs of over $10 million as a result of Hurricane Matthew.
The brewery, which is responsible for the production of popular beer brands such as Kalik and Heineken, lost around 20 percent of the roof at its Clifton Pier manufacturing plant; it also suffered equipment loss and "massive" interior damage.
The report, released last week, stated that the brewery was well insured, and the financial impact was very limited.
Nevertheless, the financial impact from the hurricane, tied with the country's weak economic state, led to a 4.9 percent decline in revenue in 2016. Total revenue for last year totaled $117.8 million, a $5.6 million decrease from 2015.
The company also placed a heavy reliance on the success of Baha Mar, noting its positive financial impact for the business.
Chairman of the board Julian Francis said, "During this last year (2016), the company's operating results, despite the important ongoing work to modernize and reposition our business, reflected the combined impact of a weak economy, a major hurricane and a consuming public adjusting to the second full year of the 7.5 percent value-added tax introduced in 2015 ... We are optimistic that this current period of economic malaise will lift in due course.
Already, there appears to be real progress toward an eventual, at least partial, opening and operation of the Baha Mar project during 2017.
"If this does materialize, the economy will derive from it much-needed support, and our business, like others, will no doubt be positive impacted."
Francis also explained that CBL is "deeply and widely" linked to various sectors, such as food, communications, energy, transport and other vital sectors.
Hans Neven, managing director of CBL, added that the "expected progress" on Baha Mar has not been seen. "We remain positive that this mega resort will open and deliver the promised input in the Bahamian economy," he said.
Nevens added: "The despondent local economy situation was related primarily to Baha Mar remaining closed; unemployment still at a high, which kept disposable income under pressure; and, of course, another hurricane ripping through several of the Family Islands and this time, too, crippling New Providence with major damage."
To date, the company has 57 stores and 426 employees. CBL also has over 3,000 shareholders.

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