CBL records $3.4 million net loss amid COVID-19 pandemic

Ongoing emergency powers measures, put in place to curtail the spread of COVID-19 and the weakened disposable income of Bahamians, led to a loss for Commonwealth Brewery Limited (CBL) in the third quarter of 2020, with the company recording a net revenue decline of 27.8 percent and a net loss of $3.4 million at the end of September.

CBL, in its financial results ending September 30, noted it was able to remain financially stable in the midst of the pandemic by increasing its short-term financing.

“The ongoing COVID-19 pandemic continues to have substantial impact on the economy and the operations of Commonwealth Brewery Limited (CBL),” the company stated.

“During the third quarter of 2020, the government of The Bahamas continued measures to curtail the spread of COVID-19 by instituting additional lockdowns, curfews and limitations on social gatherings. These factors contributed to a less than favorable third quarter for the company, given that commercial activities were limited due to the factors described and the strain on consumer’s disposable income.

“CBL’s management has been able to achieve financial stability through early actions taken during the first quarter of the year, by increasing short-term financing. This proved pivotal to CBL’s ability to navigate periods of lockdown during which revenue has severely reduced due to the halt of economic activity.

“This short-term financing strategy has been sustainable through the third quarter, with the company not requiring further financing.”

The company revealed that it suffered a total comprehensive loss of $766,000, compared to its 2019 same-period result of $1.68 million on the positive side. 

The company added that operating expenses were reduced by 19.8 percent year-on-year.

CBL stated it will focus on “cost reduction and increasing value to customers through our diverse product offerings”.

“As we move towards the final quarter of the year, CBL will continue to adapt to the changes brought on by the pandemic as we navigate our way to a return to profitability,” the company stated.

“CBL’s management and staff will continue to navigate through the constant changing circumstances, with the goal of weathering the pandemic and returning to profitability at the earliest possible time.”

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