Kasapreko Company Limited, one of Ghana’s brightest indigenous beverage producers, is touting an impressive transformation following the bold decision to list on the Ghana Stock Exchange in 2024.
Kasapreko testifies that after the major leap last year, the move is reshaping the company’s growth trajectory and positioning it for African dominance under the African Continental Free Trade Area (AfCFTA).
The Managing Director of the local beverage company, Richard Adjei, in a spirited address at the Ghana Stock Exchange’s “Facts Behind the Figures” series, described the company’s listing as a “historical” milestone that not only unlocked new capital but also opened a new era of strategic expansion and business realignment.
He touts that the decision to list on the capital market is one of the biggest achievements of the company in the 2024 business year.
“In 2024, I think one of our biggest achievements was certainly coming onto the market. That has helped us shape the business as we see it today,” the Managing Director remarked.
The Listing
The company took the bold step to enter the corporate bonds market after the advice by stakeholders such as the Ghana Stock Exchange and the Consolidated Bank Ghana (CBG).
Between equity and bonds, the strategy agreed was to raise corporate bonds. Within a year, the MD revealed that Kasapreko was able to raise GHC 350 million in corporate bonds on the stock exchange. This capital, the MD indicated, has been able to help the company transform its operations and gain new heights both domestically and externally.
Growth Numbers After the Listing
The Deputy MD for the company, Greg Pitt, clarified that the capital raised from the market was used to enhance working capital and cash flow, aimed at driving brands that fueled the growth, such as Awake, Storm, and Alomo Bitters.
In 2024, the company witnessed a 36% growth in the volumes of alcohol sold. In the non-alcoholic portfolio, that’s water and soft drinks, about 29% growth was recorded.
On the finance aspect, that company also revealed the following progress;
- Revenue reached $2.7 billion, marking a 45% year-on-year (YoY) growth.
- Gross profit rose by 47% YoY, while Profit Before Interest and Tax surged by 80%.
- Interest cover stood at 178%. When adjusted for exchange losses on foreign loans (amounting to $32 billion), interest cover improves to nearly 200%, reassuring investors of strong debt service capacity.
- Profit After Tax recorded an exceptional 574% YoY growth, reflecting a remarkable turnaround.
- The outstanding performance was driven by increased sales volume, particularly from successful penetration into new markets that had previously not been tapped.
- On the balance sheet, total assets grew by 40%, reaching $1.6 billion.
“We can see throughout the numbers that since we started the bond programme, business numbers have changed,” the MD touted. He continued that the funds are fueling innovation, operational efficiency, and infrastructure development across its product lines and regional operations.
The Dream: Dominating the Local & African Market
The company is now the market leader in the spirits segment and ranks among the top three players in the water and soft drinks category. This achievement, the company boasts of as a remarkable progress for a business that started as a small bottling company in the 1980s.
“For us, we are currently number one in the spirits business in Ghana and in the top three of the water and soft drinks category as well,” the MD affirmed, underscoring the impact of its market-facing strategy.
But Kasapreko isn’t stopping at domestic dominance. With Africa’s single market of over 1.2 billion people now within reach under the AfCFTA framework, the company is setting its sights on becoming a continental beverage powerhouse.
“As a business, one of our goals was not only to come onto the market, but also how do we prepare for the AfCFTA that the African leaders are talking about,” the MD said. “We are building ourselves for one of the biggest population groups in the world.”
The vision of the company is to leverage its strong brand, increased access to capital, and regional trade infrastructure to penetrate new African markets, establish local partnerships, and distribute competitively priced products across borders.
A Model for Local Businesses
For the Managing Director, the success story of Kasapreko after listing on the Ghana Stock Exchange should be a lesson for all indigenous businesses that aim to grow and expand. Ghanaian enterprises, Richard Adjei says, he can use the capital market to unlock value, scale operations, and compete globally.
The new momentum of the indigenous beverage company now puts Kasapreko in the limelight with the potential to become a multi-million dollar company across Africa and the world. With a proven track record, significant capital raised, and a clear growth agenda, Kasapreko is now one of the most closely watched Ghanaian brands in the beverage space.
