Seychelles Breweries suspends interim dividend for first half of the year |20 May 2020
Seychelles Breweries Ltd (SBL) has announced that it will suspend the interim dividend for the first half of the year.
The full year dividend will be reviewed based on the full year actual performance of the business and the prevailing macro-economic conditions at that time, later in the calendar year, the company has said.
The raison d’être behind the decision is explained in a press release issued yesterday by the company and which reads as follows:
“Seychelles Breweries is a proudly local business and manufactures a broad portfolio of beers, ciders, ready to drink and carbonated soft drinks. The company also imports international premium spirits, including Johnnie Walker Whiskey.
“Exiting the 1st half of the company’s fiscal year, July to December 2019, the prevailing conditions at that time were positive and there were strong expectations around trading for the remainder of the fiscal year from January to June 2020.
“However, like other businesses locally and internationally, the COVID-19 pandemic has had a major impact, as it has done on the wider Seychelles economy, with tourism declining sharply and out of home outlets closed from Mid-March.
“In addition, the sharp depreciation of the Seychelles Rupee against the US Dollar has put significant inflationary pressures on the cost base including raw materials, components and essential capital expenditure items, all of which are primarily imported.
“The company has thus taken a view that it is prudent to suspend the interim dividend for the first half of the year. This announcement is in relation to interim dividend only.
“The full year dividend will be reviewed based on the full year actual performance of the business and the prevailing macro-economic conditions at that time, later in the calendar year.
“Seychelles Breweries would like to thank its valued shareholders for their continued support and understanding during this challenging time.”