Kasapreko reports GH₵73 million profit for Q1 2026

Kasapreko PLC, the Accra-based alcoholic and non-alcoholic beverages manufacturer, has delivered a 55 per cent increase in profit for the first quarter ended March 31, 2026, driven by a sharp reduction in borrowing costs and a modest uplift in revenue.

Profit for the period climbed to GH₵73 million from GH₵47.2 million in the same quarter last year, even as the company faced higher administrative expenses and sustained impairment losses on financial assets.

Revenue edged up to GH₵853.2 million from GH₵821.9 million in the prior year quarter, reflecting resilient demand across its portfolio of spirits, non-alcoholic drinks and export products. Gross profit rose slightly to GH₵221.4 million from GH₵219 million, with cost of sales increasing proportionally to GH₵631.8 million.

The most striking improvement came from the finance cost line, which plummeted to GH₵30 million from GH₵52.7 million a year earlier, a drop of nearly 43 per cent. That dramatic reduction in interest expenses, coupled with a modest rise in finance income to GHS 630,000, provided a significant tailwind to bottom-line performance. Operating profit itself also improved, rising to GH₵124.7 million from GH₵112 million.

However, general, selling and administrative expenses expanded to GH₵114.5 million from GH₵98.7 million, with the breakdown showing general and administrative costs climbing to GH₵35.3 million and depreciation rising to GH₵8.8 million. Net impairment losses on financial assets eased to GH₵3.3 million from GH₵4.1 million, offering slight relief. Other operating income swung into positive territory, contributing GH₵21.2 million compared with an expense of GH₵4.2 million in the prior year, a notable swing that also boosted operating profit.

Taxation took a larger bite this quarter, with income tax expense rising to GH₵22.2 million from GH₵12.4 million, reflecting the application of different tax rates across the company’s production sites. Kasapreko’s Tanoso-Kumasi factory attracts a 12.5 per cent rate, the Spintex-Accra factory is taxed at 25 per cent, while export sales benefit from an 8 per cent rate.

Looking ahead, the company disclosed a significant liability management development. It will begin funding a sinking fund account from August 2026 through December 2026 as part of its repayment strategy for Series 1, Tranches 01 and 02, of its corporate bond programme listed on the Ghana Fixed Income Market of the Ghana Stock Exchange. The principal obligations fall due on January 29, 2027, and consequently the bond has been reclassified as a current liability on the statement of financial position. That reclassification signals a near-term cash outflow that investors will be watching closely.