VAT increase impacts revenue growth at Commonwealth Brewery
The increase of the value-added tax (VAT) rate to 12 percent impacted Commonwealth Brewery Limited’s (CBL) revenue growth.
“There was a change in consumer spending power and disposable income due to the increase of VAT from 7.5 percent to 12 percent,” said Managing Director of CBL Jürgen Mulder in a statement yesterday.
“And we did not alter the prices of our main brands, mainly Kalik, and absorbed all residual impacts of the VAT increase.”
According to Mulder, CBL’s customers also shifted their preference to a “smaller pack size and cheaper spirits, which led to higher costs and resulted in lower priced items being purchased”.
There was also increased competition in the beer market from imported beer products.
Guardian Business understands that Bud Light has been one of the main competitors affecting the sales of CBL’s domestic beers.
CBL’s financial statement shows a year-on-year change in revenue from $133 million in 2017 to $134 million in 2018.
The statement shows that operating expenses, namely raw materials, consumables and services increased by $7 million year-on-year.
The company’s total net profit went from $18.7 million in 2017 to $6.3 million last year.
Education: Florida International University, BS in Journalism
Latest posts by Chester Robards (see all)
- BTC: No plans to ‘involuntarily separate’ from any employees - July 15, 2019
- Bahamian firm uses drone to deliver package to Green Turtle Cay - July 12, 2019
- Bahamas recognized for its progress on SDGs implementation - July 12, 2019