2020 Half Year Financial Results

PBF, Fiji’s leading alcoholic beverages manufacturer, today announced its half year results for the period ending June 2020.

PBF, Fiji’s leading alcoholic beverages manufacturer, today announced its half year results for the period ending June 2020.

A CHALLENGING ENVIRONMENT
As previously stated in our COVID-19 market updates, COVID-19 has had an adverse impact on the Quarter Two performance for our businesses. The Fiji Brewery and Rum Co. of Fiji Distillery ceased operations for six weeks from April 2020 which resulted in no production of some of our renowned brands, such as Fiji Bitter, Fiji Gold, Bounty Rum with Cola, Joskes Brew with Cola, the Tribe range and Bounty Rum. With COVID-19 lock-down restrictions, the majority of our customers were also severely affected, including closure of hotels and resorts, clubs, restaurants and duty-free trading.

OPPORTUNITY IN ADVERSITY
While normal operations were suspended for some time during the onset of COVID-19, PBF shifted its focus to producing hand sanitiser at our Rum Co of Fiji Distillery. Not only was PBF able to support the community and the health sector during the pandemic by distributing much needed sanitiser at no cost, this production also created ongoing employment opportunities for some of PBF’s team members during these challenging times.

HALF YEAR FINANCIAL RESULTS
Against this challenging background, the Company posted half year trading loss before tax of FJD 0.4m which was down on last year by FJD 4.6m. Volumes were also down 28.2% versus last year. In accordance with relevant accounting standards, as part of the process of finalising first-half 2020 financial results, the Company reassessed the carrying values of both its businesses in Fiji and Samoa. As a result, an impairment loss of FJD 14.4m was booked for the period and PBF’s consolidated loss after tax was FJD 15.5m.

DIVIDEND PAYMENT
Given the economic challenges faced by many shareholders as a result of COVID-19, the Board of Directors was pleased to announce on 30 June that a final dividend of 50 cents per fully paid-up equity share, amounting to FJD 5,204,062.50, would be paid out of the profits of the Company derived for the year ended 31 December 2019. In approving the dividend, the Board took into consideration the impact on PBF’s future business performance due to COVID-19 and the Company’s Dividend Policy, particularly the solvency and future cash requirements.

ANNUAL GENERAL MEETING
The Board of Directors looks forward to welcoming shareholders to the upcoming Annual General Meeting. The AGM will be held at 10am on Tuesday 20 October at the Paradise Beverages (Fiji) Limited meeting room, Argo Street, Walu Bay, Suva. Further updates about the meeting will be provided closer to the date of the AGM, including information about any restrictions that may apply at the time as a result of COVID-19.

Read the full results [PDF 286kb]