SAB Zenzele Kabili Experiences Substantial Decline in Profits and Earnings

SAB Zenzele Kabili (SZK) announced a decline in profits, headline earnings, and dividends for the fiscal year ending 31 December 2024.

In a Sens update, the company disclosed that profits dropped from R425 million to a loss of R1.5 billion over the year.

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Earnings per share and headline earnings per share fell from 1,050 cents to a loss of 3,717 cents per share.

SA Breweries, now known as Anheuser-Busch InBev (AB InBev), initiated its broad-based scheme, SAB Zenzele, in 2010, inviting employees, retailers, and the SAB Foundation to participate, effectively making them shareholders in AB InBev.

This was a 10-year agreement that concluded in April 2020. The unwinding of Zenzele and the initiation of a new scheme were delayed due to the repercussions of Covid-19 on both global and local markets. SAB Zenzele Kabili is now a public entity listed in the black economic empowerment sector of the JSE since 2021.

Last month, AB InBev reported earnings that surpassed predictions as the world’s leading brewer improved the margins on its best-selling beers. Nevertheless, volumes in the fourth quarter of 2024 experienced a 1.9% decline, attributed to consumers avoiding bars or opting for more affordable beer options due to challenging market conditions.

AB InBev is known for producing beers such as Stella Artois, Beck’s, and Corona.

Read:
AB InBev surpasses expectations with improved margins across major brands
Why is SAB Zenzele Kabili valued at three times its current price?

The company also reported a 31% decrease in its special dividend, dropping from 45 cents per share to 31 cents per share.

SAB Zenzele Kabili’s share performance has been underwhelming, with the stock price declining by 5% over the past year.

SAB Zenzele Kabili’s share price

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