CHAIRMAN’S MESSAGE

ANTHONY N. SABGA III CHAIRMAN

Performance like the company delivered this year does not happen by chance. It arises from the talent, dedication and hard work of all employees, ably supported by the guidance of the Board. I extend thanks to my fellow directors, the executive team, customers and all employees for their continued commitment and efforts.

Carib Brewery Grenada has leveraged our team’s expertise and our deep understanding of customers into an increase in sales of our main brands by 15%, to $70.5 million. Profit before tax also grew, by 4% year-on-year, to $11.9M – despite ongoing pandemic impacts, supply chain disruptions and inflationary pressures.

The year also demonstrated the resilience of our supply chains and strong supply partnerships, which allowed us to satisfy demand as the economy opened after the Covid-19 restrictions. We have also made significant investments in operational expenses – including equipment, customer promotions and delivery. To improve the demand for our brands, we’ve continued to invest for the future with the addition of new products and packaging.

All this demonstrates consistent resilience in the face of global unpredictability, proving the strength of our brand and our team.

Dividends are important to all shareholders. In recognition of shareholders’ continuous support, the Board has approved a final dividend payment of $1.00 per share.

In 2022, we refreshed our purpose to reflect the dedication and passion that the company extends in serving customers. It is expressed through our support for local communities and the environment. We have reaffirmed our principle of growing our business based on sensitivity to the natural environment, societal well-being and good governance.

Economic conditions in most parts of the globe have become more challenging. Slowing growth, energy-driven inflation, and potential taxation increases may all impact the company, either directly or indirectly, through ebbing consumer demand. Challenging as the external environment is, our resilience, adaptability and agility remain cause for confidence. We have a solid base to realize our ambitions for future growth, based on our strengths in brand building, the capacity and elasticity of our supply chain, and the quality of our product and workforce.

Performance like the company delivered this year does not happen by chance. It arises from the talent, dedication and hard work of all employees, ably supported by the guidance of the Board. I extend thanks to my fellow directors, the executive team, customers and all employees for their continued commitment and efforts. We have conquered many obstacles together and I am certain that our purpose and strategies will enable us to move forward with confidence, continuing to deliver solid financial results year upon year.

2022 was another volatile year marked by supply chain disruptions and soaring material costs, that posed serious threats to growth. Nonetheless, Carib Brewery (Grenada) Limited (CBG) performed well and delivered year-on-year growth — a testament to the strength of our strategy, our company and our employees.

2022 was another volatile year marked by supply chain disruptions and soaring material costs, that posed serious threats to growth. Nonetheless, Carib Brewery (Grenada) Limited (CBG) performed well and delivered year-onyear growth — a testament to the strength of our strategy, our company and our employees.

Sales rose 15% as the local market stabilized as Covid-19 restrictions were further relaxed. In spite of significant cost increases, profit before tax improved by 4%. I am pleased CBG was able to deliver an improved financial outcome to our stakeholders.

CBG recorded a strong sales performance, with revenue growth of 15% from $61M to $70M. Operating profit before tax improved by 4% to $11.9M. Our dividend distribution more than doubled – from $3.5M in the prior period to over $8M, and cash balances remain strong at $20.5M. Payment of corporate income tax went up from $2M to $3.9M.

Retained earnings grew marginally from $44.3M to $44.4M as a result of higher dividends to shareholders. Overall, our financial position remains strong.

In 2022 our Company made significant investments in advertising and promotions, resulting in our products remaining “top of mind” as we dominated the Beer, Stout, and Malt categories. Our soft drink portfolio remains relevant; and we continue to review strategies to improve margins and strengthen this category.

In 2023, CBG is expanding our portfolio with the introduction of Eagle Ray Hard Seltzer, Mackeson Chocolate, Carib Blue, several Caribé Hard Cider flavours, and Carib Pilsner Light. These innovative products, along with other actions, will provide ongoing launch points for future strength and growth.

A decline in gross margins due to medium-term operational inefficiencies are being addressed in 2023 by further investments in plant and machinery. We are set to invest $9 million in capital projects, including the installation of a new state-of-the-art bottle washer, which will be commissioned during the first half of 2023. We have also placed significant emphasis on investments in our delivery fleet to improve our delivery capabilities.

In 2022, CBG installed a more sustainable beer filtration system. This membrane filtration system reduces the materials required for filtration by moving away from a Diatomaceous Earth (D.E.) coated stainless steel plate system.