Castel Malawi financial statement reveals risk of company’s future
Castel Malawi Limited, manufacturers of alcoholic and non-alcoholic beverages, has warned that the external threats in the current operating environment pose a risk to the company’s future development sustainability.
According to a 2020 Castel Malawi Limited financial Statement, the burden of the taxes remains critical and hardly sustainable.
“Despite Cost savings, retreachment plan, Castel Malawi remains in heavy financial losses comparing the previous years due to internal and external factors and threats affecting the business,” reads the statement.
It also states that, as a Malawian producer, Castel Malawi suffers from a high and uncompetitive tax regime while neighbouring countries like Tanzania and Mozambique incentivise their industries remain competitive and attracts local investment.
The firm’s managing director Hervé Milhade confirmed about the statement.
The statement further, indicates that high prizes of raw material and services supplied locally like industrial sugar, water, power and high level of imports due to lack of local industries ability to supply.
Castel, which took over from Carlsberg Malawi Brewery, said the depreciation of the Malawian kwacha and scarcity of available foreign currencies is another challenge the company is facing.
The report, however, asks local institution and leadership to help the industry become competitive and protect employees while benefitting consumers and Malawi economy at large.
Castel Malawi is rated as one of the top 10 taxpayers in the country, contributing to the development of the economy for over 50 years and is also the number one taxpayers of import duties.
The company employs over 1 000 people and has a business network of over 100 000 stakeholders, customers, suppliers, distributors contractors, locally and internationally.
Meanwhile there are bwanas at MRA earning over K10m a month. This country is a joke.
Carlsbeg came on the scene in the sixties and exited quietly without bothering anyone. We have had this Castel for a short period and we are hearing this Tax song over and over. Why? I hope this is not an excuse to justify quitting.
Carlsberg was a given a tax holiday of over 50 years. Castel was bought when the tax holiday was over.
Castel will close its operations in Malawi.
Knowing MRA, they don’t give a damn about businesses. All they care about is penalising businesses. Malawi will never grow with the current tax regime unless major changes and overhaul of the entire tax systems are done.
Corruption and bribery at MRA is what is also killing the Malawi economy.
Economy ya Malawi ikufunika leader wamavuvu. Clean out the dirt. It is just too much.
You have put it very well. The miscalculations of chikaonda..
Doing business in Malawi CA be a Sin because the Tax Man is always on your neck for Tax Compliance of some sort. It’s frustrating when some individuals get away with it or are untouchables
Other companies are making profits in Malawi, operating in the same condition. Even we the citizens, feel the punitive taxes, but we survive. Just go to mass production, while reducing the prices, then we will drink your products and not Frozzy from Mozambique. By the way, your products are good but too expensive so we go for Yess, Frozzy etc, foregoing the quality but saving for tomorrow.
Think your children will have to find jobs, they will go to Mozambique. Why are products from Mozambique cheaper ? It is not a landlock country, taxes are lower, sugar is cheaper, electricity is cheaper, salaries are lower. You want to earn l’ESS than 20 USD par month ? Go to Mozambique. With your mindset, jobs will be created in the neighboring countries and we will be the next Zimbabwe
You cannot mass produce when taxes are higher. You cannot reduce prices when production costs are higher because of excessive taxes.
No country grow with higher taxes as companies close instead of expanding
my business partner once said, and i quote, ” before heavy rains, it showers” end of quote. and wanzeru amabwerera nakatenga ambullela. its time for this new govt to revise the tax policy before the worse happens.
The Tonse alliance is only talking. Non action to preserve or to boost our economy. Castel closed already their business in Gambia, in Niger, will Malawi be the next ? When you look at the local newspapers, all governments are crying after when it is too late ! Are we going to be the only one country in sadc not producing our own beer ? Where the government is going to source the 20 billion they collect from Castel every year?
This is very bad as Castel is the only producer of this mind inducing fluid.As already indicated , something is wrong at PCL the mother sucker of small companies which were economically viable if they were to stand alone.Kamuzu used to keep an eye on PCL and those appointed over see its operation were afraid of being sent Mikuyu,These days it is free for all and politicians get spoiled by executives from government own companies.If this katangale syndrome continue our economy will fail drastically.
Full of vengeance. You can easily tell kuti uyu uyu ndiwa utm or mcp. All over sudden you are very intelligent people as if you can even manage a shop