Kasapreko PLC has reported a strong start to 2026, posting a 55% increase in profit for the first quarter ended March 31. The growth was largely driven by a sharp drop in borrowing costs, alongside a steady rise in revenue.

The Accra-based beverage manufacturer recorded a profit of GHS73 million, up from GHS47.2 million in the same period last year. This improvement came despite higher administrative expenses and some losses on financial assets.

Revenue saw a modest increase to GHS853.2 million, compared to GHS821.9 million a year earlier. The company’s performance reflects continued demand for its range of alcoholic and non-alcoholic drinks, as well as its export products.

Gross profit remained relatively stable, inching up to GHS221.4 million from GHS219 million. However, the cost of sales also rose in line with revenue, reaching GHS631.8 million.

A major factor behind the improved results was the significant reduction in finance costs. Interest expenses dropped by nearly 43%, falling to GHS30 million from GHS52.7 million last year. At the same time, finance income saw a slight increase to GHS630,000. Together, these changes gave a strong boost to the company’s overall profitability.

Operating profit also improved, rising to GHS124.7 million from GHS112 million in the previous year.

On the cost side, general, selling and administrative expenses increased to GHS114.5 million, up from GHS98.7 million. This was mainly due to higher general and administrative costs, which reached GHS35.3 million, as well as increased depreciation of GHS8.8 million.

There was some relief from lower impairment losses on financial assets, which declined to GHS3.3 million from GHS4.1 million.

Another positive development came from other operating income, which recorded a gain of GHS21.2 million. This marks a significant turnaround from an expense of GHS4.2 million in the same period last year and contributed to the stronger operating performance.

However, taxation increased during the quarter, with income tax expenses rising to GHS22.2 million from GHS12.4 million. This reflects the different tax rates applied across the company’s operations. The Tanoso-Kumasi factory is taxed at 12.5%, the Spintex-Accra factory at 25%, while export sales benefit from a lower rate of 8%.

Looking ahead, Kasapreko has outlined plans to manage its upcoming debt obligations. The company will begin funding a sinking fund between August and December 2026 to prepare for the repayment of parts of its corporate bond programme.

These bonds are due on January 29, 2027, and have now been classified as a current liability. This means the company will need to make the payments within the next year, a development that investors are likely to monitor closely.

Overall, Kasapreko’s first-quarter performance shows steady growth supported by lower financing costs, even as expenses and tax obligations continue to rise.