Kasapreko PLC, a leading alcoholic and non-alcoholic beverage manufacturer based in Accra, announced a substantial 55% increase in profit for the first quarter ended March 31, 2026. The company reported a profit of GH₵73 million, up from GH₵47.2 million in the same period last year. This significant growth was primarily fueled by a sharp reduction in borrowing costs, alongside a modest rise in revenue.
Financial Performance Highlights
The company’s revenue saw a modest uplift, reaching GH₵853.2 million from GH₵821.9 million in the prior year’s quarter. This resilient demand spans across Kasapreko’s diverse portfolio, including spirits, non-alcoholic beverages, and export products. Gross profit experienced a slight increase to GH₵221.4 million, with the cost of sales rising proportionally to GH₵631.8 million.
A key driver of the enhanced profitability was the dramatic decrease in finance costs. These costs plummeted by nearly 43%, falling to GH₵30 million from GH₵52.7 million year-on-year. This reduction, combined with a slight increase in finance income to GH₵630,000, provided a significant boost to the company’s bottom line. Operating profit also demonstrated improvement, climbing to GH₵124.7 million from GH₵112 million.
Operational Expenses and Other Factors
Despite the positive profit trend, general, selling, and administrative expenses saw an expansion, rising to GH₵114.5 million from GH₵98.7 million. Within this category, general and administrative costs increased to GH₵35.3 million, and depreciation costs rose to GH₵8.8 million. Net impairment losses on financial assets saw a slight reduction, easing to GH₵3.3 million from GH₵4.1 million.
Another notable positive contributor was other operating income, which swung from an expense of GH₵4.2 million in the prior year to a positive contribution of GH₵21.2 million. This significant swing positively impacted operating profit.
The company’s tax expense increased to GH₵22.2 million from GH₵12.4 million. This rise reflects the varying tax rates applied across Kasapreko’s production facilities, with the Tanoso-Kumasi factory taxed at 12.5%, the Spintex-Accra factory at 25%, and export sales benefiting from an 8% rate.
Upcoming Bond Repayment and Market Watch
Looking ahead, Kasapreko PLC has disclosed a significant development regarding its liability management. The company will commence funding a sinking fund account between August and December 2026. This initiative is part of its strategic repayment plan for Series 1, Tranches 01 and 02, of its corporate bond program, which is listed on the Ghana Stock Exchange. The principal obligations for these tranches are due on January 29, 2027.
Consequently, this bond has been reclassified as a current liability on the company’s statement of financial position. This reclassification signals an upcoming significant cash outflow, which will be a key area of focus for investors and market analysts in the coming quarters.
Leave a Reply