(Business in Cameroon) - In 2017, Société des Eaux Minérales du Cameroun (SMEC) witnessed a 26.3% drop in sales, the parent-company Brasseries du Cameroun (Sabc) said in a report.
According to the document, the underperformance is due, among others, to the discontinuance of purchases by the logistics company Ecolog in Central African Republic (CAR) which now sources from a CAR-based water production company.
Other reasons are the suspension of ex-works sales and delays in Sabc’s distribution chain, coupled with the delayed launch of the “Vitale” brand and a drop in the lemon-flavored brand’s sales. Besides, the company is facing a stiff challenge by Sources du Pays and Sano.
During the period under review, SMEC’s net income (corporate tax excluded) amounted to CFA159 million, reflecting a CFA937 million loss, far above the CFA316 million loss in 2016. Let’s however mention that the company is set to recover in 2018, over higher volumes and the improvement of competitiveness with all other marketing and distribution expenses now on Sabc.