2023 ANNUAL

REPORT
Strengthening our Foundations
for a more Sustainable Future
 COMPANY PROFILE

REGISTERED OFFICE Heineken Saint Lucia Ltd (HKSLU) is a sustainable beverage company, brewing
HEINEKEN Saint Lucia world-class, high-quality products to bring enjoyment to life
Limited
St. Jude’s Highway Heineken Saint Lucia Ltd. (previously Windward & Leeward Brewery) was
Vieux-Fort Industrial Estate incorporated under the Commercial Code of Saint Lucia on March 11, 1974
Vieux-Fort and continued under the Companies Act of Saint Lucia as Company No. 21 of
1974.
AUDITORS In 2016, WLBL merged with Du Boulay’s Bottling Company Ltd. (DBC) to
Grant Thornton create the largest total beverage manufacturer in St. Lucia and the Eastern
Pointe Seraphine Caribbean. DBC commenced production in 1972 and has a rich history in the
PO Box 195 soft drink business. The combined company produces and distributes high-
Castries, St Lucia quality alcoholic and non-alcoholic beverages. After further amalgamation in
West Indies 2021 the company became Heineken Saint Lucia Ltd in February of that year.
The company produces high quality beverages in six categories including Beer,
BANKERS Cider, Malta, Carbonated Soft Drinks (CSD), Energy and Water.
CIBCFirstCaribbean
International Bank The company’s alcoholic portfolio includes Heineken Beer, Piton Beer, Piton
Bridge Street, Castries Shandy Guinness, Desperados, Strongbow Cider, Amstel Bright, and Red Stripe.
The non-alcoholic portfolio includes Piton Malta, Vita Malt, Coca Cola, Sprite,
BNP Paribas SA Schweppes, ICY, Crystal Clear Water, Crystal Clear Flavoured Water, Royal Club,
Netherlands Climax and Monster.
Herengracht 595 1017 CE
Amsterdam The Brewery’s capacity at start-up was 50,000 hectoliters with a workforce of
60 employees. Today, the workforce has grown to over 230 employees and has
SOLICITORS AND the capacity to produce 500,000 hectoliters under one single roof.
COMPANY SECRETARY As an agent of sustainable change Heineken Saint Lucia is committed to
Mc Namara & Co. Brewing a Better World and a better Saint Lucia by caring for people and the
Micoud Street planet.
Castries
CONTENTS

2 Chairman’s Report

4 Managing Director’s Report

8 Evergreen

9 Brew a Better Saint Lucia

11 Sustaining Futures

Commercial Highlights:

12 Piton

14 Coca-Cola

16 Heineken

19 Piton Malta

20 Board of Directors

22 Management Team

24 Financial Statements

65 Notice of Annual General Meeting

66 Proxy Form
 David Lisle Chase FCCA, CA, STEP CHAIRMAN’S REPORT

It is my pleasure to present to you the Annual Report by HEINEKEN Saint Lucia. Net revenue grew +10.9%,
of HEINEKEN Saint Lucia for 2023. The theme is driven domestically by both the alcoholic portfolio (+7.8%
‘Strengthening our Foundations Towards a more revenue) and non-alcoholic portfolio (+20% revenue) and a
Sustainable Future’ because with COVID-19 and its +16.6% increase in export revenue.
subsequent recovery behind us, the company has been
able to consolidate stronger financial results which sets us Input cost inflation continued to be a challenge in 2023,
up for further future success. but the company offset this with strong fixed
cost discipline and gross savings of XCD$3.7m.
Before reporting on the company performance, The topline growth resulted in a bottom-
let me start by thanking Mr. Thibault Mesqui, line increase of +4% in Operating Profit,
Managing Director of HEINEKEN Saint Lucia achieving XCD$24.2m. This growth may
from October 2019 until July 2023, for his service seem humble, but it is worth remembering
to the company. Under Thibault’s leadership the that the previous year, 2022, was a year
company navigated many challenges – notably of exceptional recovery and a record-level
COVID-19, the physical integration of the former Operating Profit. Whilst the majority of
DuBoulays Bottling Company (DBC) into the 2022’s results was driven by the strong
brewery operation in Vieux Fort, and global supply rebounding of our domestic and export
disruptions – to deliver strong growth alongside business, the company also enjoyed
great care for our employees and the environment. some substantial ‘one-off’ benefits,
such as insurance refund
Taking over from Thibault, we welcomed for the flood and some
Ms. Holly Bostock to Saint Lucia in input cost reversals.
July 2023 as the new Managing When we remove the
Director – and the company’s first unique one-off items
female lead. Holly has worked for in both 2022 to 2023,
HEINEKEN for 14 years, and has the organic operating
held international leadership profit growth is +18%.
roles in Vietnam, Myanmar This achievement
and Amsterdam. It is a shows that there
pleasure to see how are structural
quickly she has settled improvements in the
into life in Saint Lucia business fundamentals
with her family, as and gives much
well as her smooth confidence looking ahead.
integration into
the company and More than operating profit
culture. delivery, I am pleased
to be able to comment
STRENGTHENING on the improved cash
OUR FOUNDATIONS situation of the company.
2023 was a year in which the cost of Free Operating Cash Flow
living was a key theme both globally improved +284% to reach
and here in the Caribbean, with XCD$16.6m. This has
inflation in Saint Lucia reported at been achieved mainly
+4.3%. Growth was experienced through improved cash
on the island with a reported GDP flow from operations
rate of 3.2% and tourism increased and working capital
(albeit not yet to pre-covid levels). management, and the
It is within this context that I’m company ended the
pleased to report that 2023 was year with a positive
a year of solid financial delivery cash balance.

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CHAIRMAN’S REPORT 2023 ANNUAL REPORT

TIME TO BALANCE DEBT AND DIVIDENDS burden associated with processing interim dividends
ahead of the end of the financial year, we believe it is best
It is with the improved delivery of the business, especially that the business streamline to a single annual payment.
on cash management, that we must now turn our attention
to addressing the fiscal situation of the company. In 2023, Therefore, for the year 2023, there is only one annual
the value of the company’s loans stood at US$15.7m, dividend payment. After having paid the US$0.7m of
and the interest, as well as the past years’ dividends, debt, and achieving a positive cash balance, the dividend
were frequently being paid from the company’s US$5m recommended by the Board of Directors is XCD$8.48 per
overdraft facility. With COVID-19 behind us, the integration share. This represents about 70% of the total dividend over
of DBC into HEINEKEN fully realized, and the business in a the year 2022 and is a substantial improvement versus
stable and healthy condition, now is the time to reduce the previous years. As the company continues to grow steadily,
approximately 50% debt ratio of the company. Long-term we expect dividends to increase from here.
this level of debt is not sustainable for the company, and
we must be intentional to reduce it. TOWARDS A MORE SUSTAINABLE FUTURE

To facilitate a balanced approach to the loan repayments, The world view of 2024 is mixed – some view it with
the Management Team has been able to re-negotiate a distinct optimism, others with concern over geo-political
long-term payment scheme with our creditors so that the tensions, insecurity and inflation. Within this context,
company will repay US$1.5m per year, for the next 10 Saint Lucia does not exist in a vacuum, repercussions of
years. To kick-start this journey, the company paid US$0.7m macro-economics reach our shores, and even companies
in 2023. These debt repayments will be prioritized before such as HEINEKEN Saint Lucia face both the positive and
the calculation of shareholder dividends and the company negative consequences. That said, the Board of Directors
will not dip-in to overdraft facilities to pay dividends – the and the Management Team are looking forward to 2024
company aims to ensure that each year we end with a with optimism. The company focus will be to reduce
positive cash balance. unnecessary complexity so that the market can be fully
served, to improve the profitability of some of our products,
The Board of Directors has approved this responsible and continue being a responsible economic and social
approach and furthermore has agreed to discontinue the contributor to our employees and communities. Together
practice of interim dividend payments. This decision has we are looking forward to an even brighter and more
not been easy, however considering our significant number sustainable future in our shared history.
of shareholders and the complexity and administrative

5 YEAR FINANCIAL SUMMARY

In Millions XCD$ 2019 2020 2021 2022 2023
Revenue 119.0 102.4 105.9 132.8 147.2
Profit before taxation 19.9 9.8 11.1 22.3 21.4
Profit after taxation 14.1 6.1 7.5 15.6 18.0
Total assets 158.9 168.4 186.1 202.3 200.5
Shareholders’ equity 98.2 96.0 92.4 99.5 106.8
Capital expenditure 18.2 24.6 31.8 13.6 11.5
Dividends per share (XCD$) 11.1 4.8 5.9 12.2 8.48
Return on assets* 12.4% 5.0% 5.4% 10.0% 11.7%
* Return on assets excludes goodwill and intangibles

3
 Holly Bostock MANAGING DIRECTOR’S REPORT

Being welcomed to Saint Lucia has been a true joy. I could Building the internal culture of our organization is a key
not have imagined a more beautiful island, a spirited priority for the Management & Leadership Team – for only
culture, and warm and optimistic company to join. I’d with a positive team environment can we ensure successful
like to start by thanking the Board of Directors for their company results. In our annual Climate Survey we saw
support during my onboarding, to Thibault for his previous Employee Engagement improve +2 points, but more
leadership, to the Management Team, Leadership Team notably we saw that ‘My Manager’ improved +9 points,
and all colleagues at HEINEKEN Saint Lucia for welcoming reflecting the on-going focus on building our people
me with professionalism and positivity, and to all our managers’ capabilities. Fostering an inclusive organisation
shareholders, business partners, stakeholders, customers is part of HEINEKEN’s values, and to do so we need to
and consumers for sharing with me all the opportunities embrace diversity, I am particularly proud that on gender
and challenges - whether in the past, present or future. diversity 46% of our Leadership Team is female.
Every visit to a new part of the island or interaction with a
member of our community is a chance to learn and I am Celebrating success and also contributing positively to our
proud to be leading a company that is so integral to the communities is another part of our DNA, and a highlight in
country as well as call Saint Lucia my home. 2023 was our full company-day where we cleaned,
painted and rejuvenated 3 schools in Vieux
PEOPLE ARE AT THE HEART OF OUR Fort, followed by an inter-company games
COMPANY afternoon. These are moments of true
togetherness and a source of company
People are certainly at the heart of Saint pride.
Lucia, and that is no different within our
Company. In 2023, we had over 230 BUSINESS PERFORMANCE
colleagues employed as part of our team
and indirectly we provide employment for On a global level, HEINEKEN’s
many more contractors and associates. focus throughout 2023 was to
It is a privilege to see our team respond to challenging market
members grow and develop; in 2023 conditions, whilst remaining
there were 16 internal promotions, 20 commited to the deployment of
employees had the chance to fulfil a the global EverGreen strategy,
‘Short-Term Assignment’ in another which focuses on delivering
part of the business, we welcomed superior, balanced growth in a
8 interns coming primarily fast-changing world. In Saint
from the Sir Arthur Lewis Lucia, we also follow the global
Community College EverGreen strategy, adapted to
and two Saint Lucian our local context and priorities.
students currently As a result, I’m pleased
pursing studies at to share that 2023 was
university level. a solid delivery top-
We continued to line, bottom-line and
invest in training cash management
for our teams to wise. Coming out of
build technical, a period of extreme
leadership disruption due to
and wellbeing COVID-19, global
capabilities as supply challenges
we focus on and inflation, which
future-fitting ran in parallel
our teams to our internal
to deliver integration of
the business the alcoholic and
priorities. non-alcoholic

4
MANAGING DIRECTOR’S REPORT 2023 ANNUAL REPORT

businesses, 2023’s performance demonstrates that our The surge in non-alcoholic demand, came at the cost
foundations and operations are strengthening. On the of our ability to produce as much water as we wanted,
topline, our net revenue grew +10.9% and leading to some out-of-stocks in the second half
this was driven by strong performance of the year. Overall, Crystal Clear volumes
across the domestic alcoholic and declined -38% (down -13k hectolitres)
non-alcoholic portfolio – thanks to – an amount which corresponds
demand but also due to a much with the uptick in other products
more stable supply of our key
products - as well as our export
A highlight is on the PET line. The capacity
– both of our equipment
delivery. our Piton brand and of the team – to deliver
simultaneous volumes for
Looking at beer, our domestic which saw a strong both CSDs and water was
revenue grew +7.8%. This
was in part due to the price
resurgence - growing not possible in 2023 and
we had to make trade-off
increase that was enacted +14% in volume. This is decisions for which we thank
back in 2022, but also due
to volume growth on some very promising for the our customers and consumers
for their understanding. We
key brands and the mix of
products sold. A highlight is
future have made revisions to simplify
the complexity of our PET
our Piton brand which saw a portfolio moving forward, along
strong resurgence - growing +14% with hiring a permanent 2nd shift,
in volume. This is very promising for so that we can try to meet the demand
the future, and we will invest in 2024 on across the full portfolio. It’s with this positive
exciting campaigns to keep the Piton-love alive. spirit, we launched Crystal Clear flavoured water – in
We also saw great performance of one of our smaller Lemon & Grapefruit – at the end of the year, to add more
brands - Desperados – which was up +137% in volume. In excitement and value to the water category with a sugar-
2023 we launched Desperados Mojito and this has even free proposition.
helped to reinvigorate Desperados Red. A moment of
celebration for beer in 2023 was the return of Oktoberfest
We are proud to be the #1 exporter in terms of value from
en Kwéyòl – back for the first time after covid – where
Saint Lucia, and in 2023 the export side of our business grew
over 2700 people enjoyed the tastes of creole cuisine and
overall by +6% in volume, driven by an increase of +11%
the flavours of imported beers from across the in beer exports. The majority of our beer export
Heineken-world. is the Heineken® brand – to other Caricom
countries – but we also export Guinness,
Carnival was another key moment for Piton and Desperados. The bottles we
our brands, and a highlight for our non- send of Heineken® are returnable, and
alcoholic portfolio was the support of It was a record- coordinating the returns from various
the community carnivals with ICY,
which saw us connect to the colours
breaking year for the countries can prove logistically
challenging. In April & May 2023
and festivities from Dennery in the non-alcoholic portfolio we were faced with a sudden influx
east to Canaries in the west. It was
a record-breaking year for the non-
which grew +20.3% in of returns, which congested our
operations and caused a significant
alcoholic portfolio which grew +20.3% revenue amount of demurrage charges due
in revenue driven by historic levels of to containers needing to be kept on
production and sales of Carbonated the port. This had a considerable impact
Soft Drinks (CSDs), up +12% in volume vs on our costs for the year. The good news is
2022 as well as a good mix of products sold. that the experience generated a restructure in
Highlights include Coca-Cola up +11% and a boom our logistics ways of working, and in the second half of
in our Schweppes mixers up +107%. Our malt category the year demurrage was minimal – or even zero – in most
grew +7% in volume and energy category grew +38%. months.

5
 MANAGING DIRECTOR’S REPORT

Like many other companies, rising input and operational our Shareholders is to lead by example and help spread the
costs is a reality we faced in 2023. Our operations depend message within your community how crucial - financially,
on many 3rd parties who provide our inputs materials operationally and environmentally - these bottles are to
or machinery, all which need to be transported and the brewery and to please return once used.
imported. Alongside anticipated cost rises, we also faced
unforeseen costs – such as the health & security levy. As a Looking ahead, we will continue to calibrate the level
result, these rising variable costs reduced our gross profit of investment we need with what we can afford. Aside
margin. However, to offset this, we took a disciplined (and from CAPEX investments, there will be an intense focus
not always easy) approach to fixed cost management, on planned preventative maintenance of our equipment
which improved 242 bps in 2023. Being agile and cost and structured spare parts management so that we can
consciousness is something we will continue to strengthen more smoothly run our lines. This will run in parallel with
moving forward. a reduction of complexity in the number of SKUs in our
portfolio so that we can increase our production efficiency,
This brings us to an Operating Profit growth of +5% versus serve the market better and increase our profitability.
2022. Without the one-off items in both 2022 or 2023
considered, we delivered a +18% organic growth BREWING A BETTER SAINT LUCIA
improvement. Moreover, free operating cash How we approach the environment and
flow improved almost 3x vs 2022. These our communities is also of long-term
results show a solid delivery of our importance and we face both
business operations and should give In 2023 we spent challenges and opportunities across
confidence for the years ahead. It XCD$12m on CAPEX a multitude of topics. In 2023 we
is precisely because of this solid continued with our sustainability
position, that the Management investments on our plant and agenda ‘Brewing a Better
Team proposed to the Board of machinery, commercial assets World’ – which encompasses
Directors that now is the time
to confront the company’s and replenishing our returnable environmental sustainability,
social sustainability and the
debt and cash position, and I bottle fleet. We are proud that responsible consumption of our
am pleased that the approach
was accepted. We recognise nearly all our drinks locally products. In 2023 we reduced
our electricity consumption by
that especially in year 1 of this produced in glass bottles 6% and we strive to continue this
approach (2023), shareholders
will notice a reduction in their total
are returnable downward trend year on year. We
won’t, however, be able to make large-
dividend when comparing to the total scale reductions until we can access
dividend over the performance of 2022. renewable energy. We have as our ambition
Notwithstanding, our shareholders will benefit to be Net Zero on carbon emissions by 2030, but
long-term by the reduction in debt, interest expenses this looks unachievable based on current legislation.
and greater fiscal certainty. It is also our hope that our
Shareholders acknowledge the necessity to confront the Aside from advocating for more legislative freedom for
situation now, to create a sustainable future. companies on renewable electricity, we continue to be a
leading voice in calling for a more systemic approach to
SENSIBLE INVESTMENTS plastic waste. We recognise that some of our brands are
It is part of our responsibility in the Management Team to part of the plethora of products that contribute to plastic
make prudent investments, which are in line with the size of waste in Saint Lucia, and yet there is no formal recycling
our business, but also with the cash that we have available. available to solve such an environmental dilemma. It is
In 2023 we spent XCD$12m on CAPEX investments on our our belief that a PET deposit-system will facilitate a better
plant and machinery, commercial assets and replenishing chance of initiating consumer change and dealing with the
our returnable bottle fleet. We are proud that nearly all end-stage of plastic and we hope that all stakeholders can
our drinks locally produced in glass bottles are returnable, come together and find a solution for this in 2024.
however we still face challenges in collecting the full Under our social impact partnership, we maintained our
amount of bottles and crates from the market. An ask to support for the Saint Lucia National Trust by continuing

6
MANAGING DIRECTOR’S REPORT 2023 ANNUAL REPORT

our work to preserve the Point Sables Environmental

Protected Area (PERSPA) in Vieux-Fort. Similarly, through
our brands we also supported the economic development
of small business owners through Coca-Cola’s digital
training programme ‘Growing Together’. This saw 317
registrants, of which 95% were female, have access to
business knowledge on how to grow their businesses.
We also made sponsorship and charitable contributions
worth over XCD$500,000 in 2023 – whether supporting
school sports, donating equipment to hospitals or cultural
initiatives – to show our solidarity with our communities.

Lastly, we are all too conscious that our products need

to be consumed in moderation – whether due to alcohol
content, or in relation to sugar content. Our brands are
critical voices in promoting responsible consumption –
we offer and encourage the enjoyment of alternative
products – Heineken 0,0, Coke No Sugar and Crystal Clear
water. In 2023, continuing our ‘Drink and Live Responsibly’
campaign, we hosted a Knowledge Forum for stakeholders
and community members ahead of the Carnival season,
knowing that this is a peak-period for (over)enjoyment.
The event was a success and we will look to continue such
meaningful engagements.

LOOKING AHEAD

As we come nearer to our 50th anniversary of incorporation

– in March 2024 – it’s not lost on me how in a constantly
evolving world we must continue to strengthen the
foundations of our business whilst at the same time be agile
to adapt to changes, so that we can have a sustainable
future for our shareholders, stakeholders, employees,
customers, consumers and ultimately the country. This
is very much in line with HEINEKEN’s global EverGreen
strategy, where we aim for a healthy balance between
volume and value growth, whilst becoming the best digitally
connected brewery, raising the bar on sustainability and
responsibility and evolving our capabilities and culture.
It means we need to be courageous to face some of the
realities and make changes for the longer-term – such as
with our approach to debt – but balance this with the need
to capture opportunities and momentum wherever we can,
to seize the day.

There is much to celebrate in 2023 and to look forward to

in 2024 and beyond, and I am both humbled and happy to
be part of this journey with all of you, together.

Best wishes,

Holly

7
DRIVE SUPERIOR FUND THE RAISE THE BAR ON BECOME THE UNLOCK THE FULL
GROWTH GROWTH SUSTAINABILITY BEST CONNECTED POTENTIAL OF
& RESPONSIBILITY BREWER OUR PEOPLE

With consumer Cost & Value to drive Deliver on our Accelerate digital Promote a high-
centricity, shape & efficiency, enabling ambition to become & technology to performance culture
lead the premium reinvestments into net zero carbon in create a Unified that boosts our
category. Continue our brands and production by 2030 Customer Ecosystem strategic capabilities.
investing behind our business. and the full value with a customer
brands. chain by 2040. & consumer-first
approach.

8
BREW A BETTER SAINT LUCIA 2023 ANNUAL REPORT

BREWING A BETTER WORLD AND aimed at exploring how (Carnival)

A BETTER SAINT LUCIA stakeholders can collectively and
Brew a Better World (BaBW) is a
effectively enable a culture of
key pillar of our balanced growth responsible consumption and
strategy EverGreen, and our promote moderation in Saint
commitment to put sustainability Lucia, around Carnival and
and responsibility front and center of beyond.
all that will. It includes the following:
Corporate Affairs Manager Louise
1) Our care for the planet and the Victor set the context for the evening
environment (Mangrove project & by remarking “we know that carnival is
support for PET recycling solutions such as often associated with the consumption of
RECYCLE OECS). alcohol, so what better time to boldly address it.”
2) Our social contribution and impact to /on our
“Rarely do we pause to have a bold conversation on
communities. (School and community projects)
responsibility and misuse, and this is the reason we are
3) Addressing harmful use and promoting responsible here today.” Victor added.
consumption. (Drink & Live Responsibly)
In 2022, the company first launched its public
Our Commitment to brewing a better world continued in awareness campaign coined ‘Drink and Live
2023 with a strong focus on moderation and responsible Responsibly’ with the slogan ‘Balance is Best’. The
consumption advocacy, continued work with our messages were designed to boldly challenge citizens
communities and social partners and investment in
and consumers to consciously aim to live life with more
education.
balance and to amplify advocacy on moderation.
RESPONSIBLE CONSUMPTION - STEPPING UP
SUPPORT FOR SAINT LUCIA CARNIVAL 2023 Former Managing Director Thibault Mesqui presenting
at the Forum said “At Heineken we are brewers and
As Saint Lucia’s leading brewer and long-standing doers. Not only do we advocate, but we also take
supporter of Saint Lucian culture our company action for better change as a broad commitment
stepped up its support for Saint Lucia Carnival in a to Brew a Better World (BaBW) and a Better Saint
more meaningful way in 2023. Lucia. Our BaBW strategy is anchored in three pillars
Environmental- which involves responsiveness to
climate change, Social- working with communities for
a positive impact and Responsible consumption which
is the focus of today’s event.”
“We recognize that alcohol abuse is a complex social
issue and we do not claim to have the answers, which
is the reason we have invited and will continue to
engage you as stakeholders to find appropriate and
meaningful ways to effectively promote a culture of
moderation.” Mesqui continued in his address.

On Thursday June 29th 2023 the company partnered The Forum featured an enlightening panel discussion
with the Carnival Planning and Management Agency which was moderated by Carnival Stalwart Mr. Teddy
(CPMC) to host the first ever ‘Carnival Knowledge Francis. Panelists included Assistant Commissioner of
Forum’ as part of its Drink & Live Responsibly Police ACP Elvis Thomas, President of the Saint Lucia
campaign at The Harbor Club. The Forum was Medical and Dental Association Dr. Merle Clarke,

9
 BREW A BETTER SAINT LUCIA

WORKING WITH OUR COMMUNITIES – VIEUX-

FORT SCHOOLS BENEFIT FROM BEAUTIFICATION
PROGRAMME

On Friday August 18th 2023, team members all

laid down their tools to dedicate some time to the
community of Vieux-Fort. Ahead of the new academic
year the team spent some time improving the physical
surroundings of three schools including the Beanfield
Secondary School, the Vieux-Fort Infant School and
the Special Education Centre. The efforts of our
employees included, cleaning of classrooms and
special classroom units, pressure washing of facilities,
and repainting of some facilities.
In the afternoon, in the spirit of prioritizing work-life
Creative Director of Fuzion Mas, Ms. Melissa Giddings balance and wellbeing, the team gathered to further
and Senior Category Manager for Non-Alcoholic connect through some fun sports and quality social
Beverages at Heineken Saint Lucia Ltd, Ms. Sharlene time at the Brewery Grounds.
Jn. Baptiste.
Honourable Dr. Ernest Hilaire Minister for Tourism,
Investment, Creative Industries, Culture, and
Information was in attendance and gave his full
endorsement and support for the campaign.
For the 2023 Carnival season, the company went
further to accelerate its moderation advocacy action
by activating ‘Zero Zones’ at a series of events including
the national parade of the bands and within some
community carnival activities. The Zero Zone included
the provision of Crystal-Clear Water, Heineken 0.0
and Coke No Sugar to patrons of these events. In
addition, Massy Distribution has also joined forces
with Heineken Saint Lucia to provide serving our soup
within the Zones, as soup is known to help replenish
liquids and sodium lost to alcohol consumption.
The campaign jingle featured the iconic voice of Saint
Lucia’s very own Teddyson John, an entertainment
personality known to practice balance and moderation
himself.

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SUSTAINING FUTURES FOR A BRIGHTER SAINT LUCIA 2023 ANNUAL REPORT

We maintained our commitment In 2022, the company revealed the

to investment in education through official new umbrella brand under
our Sustaining Futures Progamme. In which the Scholarship Programme falls,
its 38th year, our Scholarship Awards ‘Sustaining Futures’. Sustaining Futures is
Ceremony was held under the theme not exclusive to scholarship disbursements,
“Nourishing Tomorrow’s Visionaries. Empowering but also extends to our internship programme and
Future Leaders”, with twelve families benefiting from text-book scheme.
this year’s installation of the programme for the
academic year 2023-2024. In 2023 the company invested upward of
XCD$35,000.00 in the programme.
Annually, scholarships are awarded to the children
of team members who have been successful at the The guest speaker for the event was Mr. Kendall
Common Entrance examination, (now the Caribbean Elva, Acting Deputy Director- Department of Social
Primary Exit Assessment (CPEA)) and to those who Transformation. Also featured was Logistics and
maintain a minimum average of 60% during the Operations Lead Distribution Centre -Adrian Hyacinth
academic year. who delivered the featured parent address and current
scholar Althea A Joseph, who delivered a testimonial.
A total of four new beneficiaries were welcomed to
the programme while eight continued based on their
academic performance.

11
 PITON BEER - A SAINT LUCIAN CARNIVAL EXPERIENCE

As Saint Lucia’s leading beer brand and a platinum

sponsor of the Saint Lucia carnival, Piton Beer has
become an integral part of the Saint Lucian carnival
experience, loved by locals and visitors alike as
they revel in the summer festival, which served as
the perfect stage for connect with consumers and
showcase its commitment to spreading the essence of
Caribbean culture.
In 2023, Piton Beer excitedly kicked off the Saint Lucia
Carnival season with the Fet with Piton promotion.
This promotion gave consumers the chance to win
carnival costumes, carnival event tickets, branded
merchandise, and the grand prize: one lucky consumer
set sail on the Uber Soca Cruise.
The winner, Shyan Chiquot, was elated to have won,
having been a fan of Piton Beer since its inception,
purchasing to win was a no brainer. He and his guest
set sail on a five-night journey aboard the Uber Soca
Cruise, a renowned celebration of Caribbean culture.
The cruise featured live performances by top Soca
artists, thrilling parties, and unforgettable experiences
while sailing through the Caribbean.

12
2023 ANNUAL REPORT

13
 COCA-COLA HELPS TRANSFORM
COMMUNITY BUSINESS LIFE

The course covered topics such as: inclusion and personal

growth, managing your business, digitalization of the
business, and financial health. It was available 24 hours
a day, accessible on mobile phones, and able to be
completed in just 90 minutes, which led to a diploma to
validates participants’ efforts.

Honourable Emma Hippolyte Minister for Commerce,

Manufacturing, Business Development, Cooperatives
and Consumer Affairs was in attendance and gave her
Ministry’s full endorsement of the programme, notably
emphasising that “given such a rapidly changing business
landscape, digital transformation is crucial, as it represents
a fundamental shift in streamlining business operations.”

Also in attendance was Honourable Kenson Casimir,

Parliamentary Representative for Gros Islet, Executive
Director of the St. Lucia Chamber of Commerce Mr. Bryan
Louisy, and Mrs. Reena Teelucksingh, Coca-Cola Franchise
Operations Manager for KOSCAB, Saint Lucia and Trinidad
and Tobago.

Small businesses, such as shops, grocery stores, and

convenience stores, are a fundamental pillar in the
economy and everyday life of Saint Lucia. Besides their
economic significance, these small businesses hold rich
cultural and communal value. On Tuesday November
7th, The Coca Cola Foundation and Heineken Saint Lucia
Ltd officially launched ‘Growing Together’; a free digital
training programme aimed at empowering small business
owners, at the Gros Islet Human Resource Centre.

In presenting the programme at the event launch, Representatives of the Gros-Islet Vendors Association were
Managing Director of Heineken Saint Lucia Ms. Holly also present and profited the opportunity to sign up for the
Bostock shared, “as a global company with incredibly training programme.
impactful global brands, we understand our responsibility
to use our business as a positive force for change. Over the In the month of December, the programme continued
years we have remained committed to making a positive with in-person training hosted in the south for Heineken
contribution to the communities where we source, live, Saint Lucia customers, Coca-Cola trade partners and
work and sell our products; and today is no different, as we community-based groups along the southern belt.
officially introduce Growing Together to Saint Lucia.” To learn more about Growing Together visit https://www.
“Traditional trade shops are places where local traditions facebook.com/GrowingTogetherCaribbean/
and customs can be found, and spaces that promote This innovative economic empowerment initiative was also
dialogue and community interaction. Hence, to facilitate available to shopkeepers of traditional trade businesses in
the continued growth of these spaces, over one hundred Jamaica, Belize and Saint Lucia.
(100) small business owners will benefit from this
programme.” Bostock added.

14
 2023 ANNUAL REPORT

“I’m irresistibly tasty

and No Sugar”

15
 HEINEKEN® CELEBRATES 150TH ANNIVERSARY

Heineken®, one of the world’s most recognised beer

brands, marked its 150th anniversary in 2023. The global
celebration was launched in June at the beer’s home base
in Amsterdam and celebrations spread across the world.

Yet, despite this symbolic milestone, Heineken®, chose to

focus less on history and advertising, but rather on “good
times”.

Freddy Heineken was quoted as famously saying “I don’t

sell beer, I sell gezelligheid”. “Gezelligheid” translated is
that feeling of good times, something that has been at
the heart of the Heineken® brand for the last 150 years.
To celebrate this milestone anniversary, Heineken®
placed ‘good times’ front and centre of its global birthday Locally, in celebration of this milestone Heineken®
festivities. celebrated consumers with an exciting promotion. To
qualify consumers were required to purchase a bucket
Bram Westenbrink, Global Head, Heineken® Brand, said: or six pack of Heineken at participating outlets, scan
“Brewing good times has been in our DNA for 150 years. the digital entry card to get a chance to win Heineken
That is why we are evolving our brand metrics to show that merchandise, restaurant vouchers, staycations, jewelry
creating good times is equally as important as the beer we vouchers, Heineken product and the Grand prize of a VIP
produce. By better understanding the conditions behind Trip for 2 to The Heineken Regatta in St Maarten.
good times in today’s world, we can continue to create
experiences for all our global customers that promote Emma Etienne from Plateau Babonneau emerged as the
that feeling of gezelligheid – whether that is through the Grand prize winner of a VIP Trip for 2 to The Heineken
messages in our advertising, our sponsorships, and events Regatta in St Maarten. The Regatta took place from
or of our range of products including our non-alcoholic February 29th – March 3rd, 2024. The annual event
Heineken® 0.0 or our more modern flavoured Heineken® attracts participants and sailors from over thirty-seven
Silver.” (37) countries and features four days of world-class racing
and non-stop exciting events.
“Recognising this and as part of the anniversary celebration,
the Heineken® brand collaborated with behavioural For more details about Heineken®’s 150th Anniversary
scientist Dr Chris Brauer, Goldsmiths, University of London visit www.heineken.com
to better understand the ingredients that are needed to
deliver that feeling of “good times” in the modern day; a
surprisingly under-studied human need; and to create the
'Good Times Index.’” Westenbrink added.

16
2023 ANNUAL REPORT

17
 HEINEKEN UEFA CHAMPIONS LEAGUE HIGHLIGHTS

18
2023 ANNUAL REPORT

19
 BOARD OF DIRECTORS

Holly Bostock Eduardo Muñoz De La Garza

Holly Bostock was appointed the Mr. De La Garza is currently the
Managing Director of HEINEKEN Senior People Director for Heineken
Saint Lucia in July 2023. She has Americas region. A position he has
been with the company for 13 years held from April 2021. In this role,
and previously was the Corporate Mr. De La Garza oversees the People
Affairs Director in both Vietnam and strategic agenda for the region and
in Myanmar, as well as the Global coordinates with Human Resources
Communications Manager at the directors of the Americas in order
Global office in Amsterdam. to execute the strategic people
She is British and has a Masters in agenda. He also supports leadership
History of Art & Spanish from the development, strategic succession
University of Edinburgh. planning, diverse and inclusive
workplace across the region. Prior to
this role he served as Vice President
David Lisle Chase FCCA, CA, STEP Human Resources Heineken Mexico
Mr. Chase is a qualified Accountant from May 2015 to March 2021.
and Chief Executive of Financial Mr. De La Garza holds a MBA from
Centre Corporation since 1999. He Duxx Graduate School of Business -
is an active member of the Society Monterrey, Mexico.
of Trust and Estate Practitioners
(STEP), an internationally recognised Marco Mascarua
body of qualified professionals, and
an active Rotarian. He has served as Mr. Mascarua is currently the General
chairman of the Board from October Manager Export Heineken Americas.
1, 2006. In this role he manages export
business for the Americas in markets
where no Heineken Operating
Companies exist. Prior to this, he
served in various Management
positions within Heineken Mexico
from 2010-2021. He holds a MBA
from EGADE Monterrey Mexico and
a Master in Law from the University
of Michigan.

Adella St. Rose

Mrs. St. Rose is an experienced
Human Resource professional with
well over 18 years in the field. She has
served in the capacity of Divisional
Human Resource Manager for the
Goddard Group Automotive Building
Supplies and Service Division, and
Human Resource Development
Manager and Assistant Human
Resource Manager for the M&C
Group of Companies. Her passion
lies in people, individual potential,
growth and development.

20
BOARD OF DIRECTORS 2023 ANNUAL REPORT

She holds a Bachelor’s Degree in position of Managing Director for

Management Sciences from the the past 45 years is also a Director/
Warwick Business School, United Co-Founder of CPJ (St. Lucia) Ltd., an
Kingdom. She joined the Heineken integrated food service distributor to
Saint Lucia team as the Human the hospitality industry.
Resource Manager in August 2018. In
2023 she boldly took up a short-term
assignment with the regional team Richard Du Boulay
of Heineken Americas, as Regional Mr. Richard Du Boulay has a
Talent and Development lead. background in finance, where he
worked as an Auditor, Finance
Manager and then moved on to
Saidi Adebimpe become the General Manager of Du
Mr. Adebimpe joined HEINEKEN in Boulay’s Bottling Company Limited
2012 at Nigerian Breweries Plc and in 2011. Mr. Du Boulay, who also has
was appointed Finance Manager, an extensive experience in business
Heineken Saint Lucia in November has served as the President of the
2022. St. Lucia Manufacturers Association,
He held increasingly senior positions Chairman of TEPA (Trade Export
in Finance, serving as Business Promotions Agency) and Chairman
Controller for one of the largest of CPJ Saint Lucia, an integrated food
breweries in Africa as well as service distributor to the hospitality
Complexity Manager in the AMEE industry. He is currently the General
Region. In 2019, he moved to Jamaica Manager of CPJ St. Lucia.
as Strategic Business Controller and
later with added responsibility to Michael Willius
lead the OpCo’s Transformation
agenda, where he played a leading Mr. Willius has been operating as
role in transforming the Company a private Management Consultant
as well as supporting the delivery of from August 2017. Before his
strong organic and margin growths transition into private consultancy,
on both topline and profits. Mr. Willius was employed with
the Office of the Prime Minister,
Prior to joining HEINEKEN, he Government of Saint Lucia. During
worked in KPMG Nigeria and led his tenure, he served in an advisory
multiple assurance engagements role to the Prime Minister on
in the consumer industry including economic and political matters,
IFRS conversion project for the most preparing briefings to inform
capitalized company on the Nigerian policy documents, and advising
Stock Exchange. the Prime Minister on key reports
from ministries, local, regional and
Dunstan Du Boulay international agencies and foreign
diplomats. Mr. Willius holds a
Mr. Dunstan Boulay, former Senator Bachelor of Science in Management
and Minister of Trade Industry and Studies from University of the West
Commerce in St. Lucia is one of the Indies, St. Augustine Campus,
co-founding members of Du Boulay’s Trinidad and Tobago.
Bottling Company Limited (DBC),
which until 2021 was the leading
soft drinks manufacturer in St. Lucia.
Mr. Du Boulay who has held the

21
 MANAGEMENT TEAM

Alexandre Ledeboer Ezra Bernard Holly Bostock Saidi Adebimpe Adella St. Rose
COMMERCIAL MANAGER SUPPLY CHAIN MANAGER MANAGING DIRECTOR FINANCE MANAGER PEOPLE MANAGER

22
2023 ANNUAL REPORT

23
 Grant Thorton Inc.
Pointe Seraphine
PO Box 195 Castries
St. Lucia W.I.

T + 1 758 456 2600

F + 1 758 452 1061

March 22, 2024

Independent Auditor’s Report

To the Shareholders of
Heineken Saint Lucia Limited

Report on the Financial Statements

Opinion

We have audited the accompanying financial statements of Heineken Saint Lucia Limited (the Company) which comprise
the balance sheet as of December 31, 2023 and the statements of comprehensive income, changes in equity and cash
flows for the year then ended and a summary of significant accounting policies and other explanatory information.

In our opinion, the accompanying financial statements present fairly, in all material respect, the financial position of
Heineken Saint Lucia Limited as of December 31, 2023 and its financial performance and its cash flows for the year
then ended in accordance with International Financial Reporting Standards.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit
of the financial statements in the Eastern Caribbean, and we have fulfilled our other ethical responsibilities in accordance
with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.

Responsibilities of Management and those charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with
International Financial Reporting Standards, and for such internal control as management determines is necessary to
enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Chartered Accountants
Audit | Tax | Advisory
Grant Thornton International Ltd (GTIL) and the member firms are not a worldwide partnership.GTIL and each member firm is a
separate legal entity. Services are delivered independently by the member firms. GTIL does not provide services to clients. GTIL
and its member firms are not agents of, and do not obligate, one another and are not liable for one another›s acts or omissions. grantthorton.lc
Page 2
Independent Auditor’s Report…continued

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with International
Standards on Auditing will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with International Standards on Auditing, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to
cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and
whether the financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during
our audit.

Chartered Accountants
Heineken Saint Lucia Limited
Balance Sheet
As of December 31, 2023
(expressed in Eastern Caribbean dollars)

2023 2022
$ $
Assets
Non-current assets
Property, plant and equipment (Note 5) 100,646,475 101,950,170
Intangible assets (Note 6) 2,689,310 2,770,862
Retirement benefit assets (Note 7) 4,203,868 3,984,257
Goodwill (Note 8) 44,076,862 44,076,862
Other non-current assets (Note 9) – 216,425

151,616,515 152,998,576
Current assets
Inventories (Note 11) 24,432,829 31,271,994
Due from related parties (Note 12) 2,058,444 2,348,651
Trade and other receivables (Note 13) 12,623,303 10,178,373
Cash (Note 14) 9,773,002 5,491,326

48,887,578 49,290,344

Total assets 200,504,093 202,288,920

Liabilities
Non-current liabilities
Borrowings (Note 15) 24,345,479 42,456,984
Deferred tax liabilities - net (Note 16) 6,823,420 6,732,680
Other non-current liabilities (Note 17) 6,323,368 6,915,532

37,492,267 56,105,196
Current liabilities
Borrowings (Note 15) 25,161,231 7,107,945
Trade and other payables (Note 18) 20,073,188 28,188,898
Refundable packaging deposits (Note 19) 1,359,184 2,779,365
Due to related parties (Note 12) 7,030,109 4,435,644
Dividends payable 1,064,550 1,590,195
Income tax payable 1,491,003 2,602,969

56,179,265 46,705,016

Total liabilities 93,671,532 102,810,212

Equity

Share capital (Note 20) 54,527,520 54,527,520

Retained earnings 52,305,041 44,951,188

Total equity 106,832,561 99,478,708

Total liabilities and equity 200,504,093 202,288,920

Approved by the Board of Directors on 12 March 2024

DIRECTOR DIRECTOR
The accompanying notes form an integral part of these financial statements.
Heineken Saint Lucia Limited
Statement of Comprehensive Income
For the year ended December 31, 2023
(expressed in Eastern Caribbean dollars)

2023 2022
$ $

Revenue 150,386,321 136,126,748

Excise tax expense (3,187,545) (3,364,753)

Net revenue 147,198,776 132,761,995

Other income - net (Note 22) 2,341,531 3,676,257

Operating expenses (Note 23)

Raw materials, consumables and services (87,843,472) (76,671,976)
Personnel expenses (24,134,503) (22,866,066)
Depreciation and amortisation (13,368,025) (13,534,809)

(125,346,000) (113,072,851)

Operating profit 24,194,307 23,365,401

Finance (costs)/income - net (Note 25) (2,788,688) (1,081,710)

Profit before income tax 21,405,619 22,283,691

Income tax expense (Note 26) (3,450,080) (6,690,976)

Profit for the year 17,955,539 15,592,715

Other comprehensive (loss)/income

Actuarial (loss)/gain on postemployment benefit obligation (Note 7) (59,287) (266,315)
Deferred tax benefit (Note 16) 17,786 79,895

Net actuarial loss on postemployment benefit obligation (41,501) (186,420)

Total comprehensive income 17,914,038 15,406,295

Earnings per share for profit attributable to the equity holders of the
Company during the year (Note 27) (expressed in EC$ per share)

- basic and diluted 14.09 12.24

The accompanying notes form an integral part of these financial statements. 27

Heineken Saint Lucia Limited
Statement of Changes in Equity
For the year ended December 31, 2023
(expressed in Eastern Caribbean dollars)

Share Retained
capital earnings Total
$ $ $

Balance at January 1, 2022 54,527,520 37,910,073 92,437,593

Comprehensive income:
Profit for the year – 15,592,715 15,592,715
Other comprehensive loss for the year – (186,420) (186,420)

Total comprehensive income – 15,406,295 15,406,295

Transactions with owners:

Dividends (Note 21) – (8,373,943) (8,373,943)
Transfer from retained earnings – 8,763 8,763

Total transaction with owners – (8,365,180) (8,365,180)

Balance at December 31, 2022 54,527,520 44,951,188 99,478,708

Balance at January 1, 2023 54,527,520 44,951,188 99,478,708

Comprehensive income:
Profit for the year – 17,955,539 17,955,539
Other comprehensive loss for the year – (41,501) (41,501)

Total comprehensive income – 17,914,038 17,914,038

Transactions with owners:

Dividends (Note 21) – (10,574,125) (10,574,125)
Transfer from retained earnings – 13,940 13,940

Total transaction with owners – (10,560,185) (10,560,185)

Balance at December 31, 2023 54,527,520 52,305,041 106,832,561

The accompanying notes form an integral part of these financial statements.

Heineken Saint Lucia Limited
Statement of Cash Flows
For the year ended December 31, 2023
(expressed in Eastern Caribbean dollars)

2023 2022
$ $

Cash flows from operating activities

Profit before income tax 21,405,619 22,283,691
Adjustments for:
Depreciation (Notes 5 and 23) 12,840,505 12,845,634
Interest expenses (Note 25) 2,423,612 1,544,592
Amortisation of intangible assets (Notes 6 and 23) 527,520 689,176
Interest income on retirement benefit assets – net (Note 25) (278,898) (278,075)
Unrealised currency translation (gain)/loss (99,674) 61,177
Gain on disposal of property, plant and equipment (Note 22) – (255,353)
Provision for bad debts (Note 23) – 39,717

Operating profit before working capital changes 36,818,684 36,930,559

Increase in trade and other receivables (2,596,977) (833,162)

Decrease in loan receivables 368,472 368,472
Decrease/(increase) in inventories 6,839,165 (15,848,132)
(Decrease)/increase in trade and other payables (8,133,072) 744,120
Decrease in refundable packaging deposits (1,420,181) (1,107,213)
Increase in due to related parties, net 2,676,378 1,323,227

Cash generated from operations 34,552,469 21,577,871

Income tax paid (4,453,520) (1,045,348)

Finance costs paid (2,215,318) (1,329,208)

Net cash provided by operating activities 27,883,631 19,203,315

Cash flows from investing activities

Purchase of property, plant and equipment (Note 5) (11,982,778) (14,529,878)
Proceeds from sale of property, plant and equipment – 467,569

Net cash used in investing activities (11,982,778) (14,062,309)

Cash flows from financing activities

Dividends paid (11,099,770) (7,430,705)
Payment of related party borrowings (1,901,830) –
Decrease in lease payables - net (396,927) (380,293)
(Decrease)/increase in long-term incentive plan accruals (163,935) 89,308

Net cash used in financing activities (13,562,462) (7,721,690)

Net increase/(decrease) in cash 2,338,391 (2,580,684)

Cash, beginning of year (1,616,619) 964,065

Cash, end of year (Note 14) 721,772 (1,616,619)

The accompanying notes form an integral part of these financial statements. 29

Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

1. General information

Heineken Saint Lucia Limited (the Company), is a result the amalgamation of Windward and Leeward Brewery Limited
(“WLBL”) and Du Boulay’s Bottling Company Limited (“DBC”) and the simultaneous renaming of WLBL to Heineken
Saint Lucia Limited. DBC was previously a subsidiary of WLBL. The Company manufactures and distributes Heineken
Beer, Piton Beer, Guinness Stout, Amstel Beer, Malta, carbonated beverages, and water. The Company also acts as
distributor for several imported beers, ciders, maltas, and carbonated drinks.

The amalgamation of WLBL and DBC and the simultaneous renaming to Heineken Saint Lucia Limited took place
on February 1, 2021. Windward and Leeward Brewery Limited was incorporated under the Commercial Code of Saint
Lucia on March 11, 1974 and continued under the Companies Act of Saint Lucia 1996.

Heineken International B.V., a company incorporated in the Netherlands, owns 72.56% of the issued share capital of
the Company.

The registered office and principal place of business of the Company is St. Jude’s Highway, Vieux-Fort Industrial
Estate, Vieux Fort, Saint Lucia.

2. Summary of significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These
policies have been consistently applied to all the years presented, unless otherwise stated.

Basis of preparation
The financial statements of Heineken Saint Lucia Limited have been prepared in accordance with International
Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The financial
statements have been prepared under the historical cost convention. The financial statements have been prepared
under the assumption that the Company operates on a going concern basis.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting
estimates. It also requires management to exercise its judgement in the process of applying the Company’s
accounting policies. The areas involving a higher degree of judgement or complexity or areas where assumptions
and estimates are significant to the financial statements are disclosed in Note 4.

Changes in Accounting policies and disclosures

(a) New and revised standards that are effective for annual periods beginning on or after January 1, 2023

Some accounting pronouncements which have become effective from January 1, 2023 and have therefore been
adopted do not have a significant impact on the Company’s financial results or position.

(b) New standards, amendments and interpretations to existing standards that are not yet effective and have not
been adopted early by the Company

At the date of the authorisation of these financial statements, several new, but not yet effective, standards and
amendments to existing standards, and interpretations have been published by the IASB. None of these standards
or amendments to existing standards have been adopted early by the Company.

Management anticipates that all relevant pronouncements will be adopted for the first period beginning on or after
the effective date of the pronouncement. New standards, amendments, and interpretations not adopted in the
current year have not been disclosed as they are not expected to have a material impact on the Company’s financial
statements.
HEINEKEN SAINT LUCIA LTD. 2023 ANNUAL REPORT | Strengthening our Foundations for a more Sustainable Future
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

2 Summary of significant accounting policies…continued

Cash
Cash includes cash on hand and deposits held at call with banks.

Financial instruments
Recognition and derecognition
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual
provisions of the financial instrument.

Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or
when the financial asset and substantially all the risks and rewards are transferred. A financial liability is derecognised
when it is extinguished, discharged, cancelled or expires.

Classification and initial measurement of financial assets

Except for those trade receivables that do not contain a significant financing component and are measured at the
transaction price in accordance with IFRS 15, all financial assets are initially measured at fair value adjusted for
transaction costs (where applicable).

Financial assets, other than those designated and effective as hedging instruments, are classified into the following
categories:

• Amortised cost
• Fair value through profit or loss (FVTPL)
• Fair value through other comprehensive income (FVOCI)

In the periods presented, the Company does not have any financial assets categorised as FVOCI.

The classification is determined by both:

• The entity’s business model for managing the financial asset.

• The contractual cash flow characteristics of the financial asset.

All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance
costs, finance income or other financial items, except for impairment of trade receivables which is presented within
other expenses.

Subsequent measurement of financial assets

Financial assets at amortised cost

Financial assets are measured at amortised cost if the assets meet the following conditions (and are not designated
as FVTPL):

• they are held within a business model whose objective is to hold the financial assets and collect its contractual
cash flows
• the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and
interest on the principal amount outstanding

After initial recognition, these are measured at amortised cost using the effective interest method. Discounting is
omitted where the effect of discounting is immaterial. The Company’s cash, trade and most other receivables fall
into this category of financial instruments as well as listed bonds that were previously classified as held-to-maturity
under IAS 39.

31
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

2 Summary of significant accounting policies…continued

Financial instruments…continued

Financial assets at fair value through profit or loss (FVTPL)

Financial assets that are held within a different business model other than ‘hold to collect’ or ‘hold to collect and sell’
are categorised at fair value through profit and loss. Further, irrespective of business model financial assets whose
contractual cash flows are not solely payments of principal and interest are accounted for at FVTPL. All derivative
financial instruments fall into this category, except for those designated and effective as hedging instruments, for
which the hedge accounting requirements apply (see below).

Assets in this category are measured at fair value with gains or losses recognised in profit or loss. The fair values
of financial assets in this category are determined by reference to active market transactions or using a valuation
technique where no active market exists.

Impairment of financial assets

IFRS 9’s impairment requirements use more forward-looking information to recognise expected credit losses – the
‘expected credit loss (ECL) model’. This replaces IAS 39’s ‘incurred loss model’. Instruments within the scope of the
new requirements included loans and other debt-type financial assets measured at amortised cost and FVOCI, trade
receivables, contract assets recognised and measured under IFRS 15 and loan commitments and some financial
guarantee contracts (for the issuer) that are not measured at fair value through profit or loss.

Recognition of credit losses is no longer dependent on the Company first identifying a credit loss event. Instead the
Company considers a broader range of information when assessing credit risk and measuring expected credit losses,
including past events, current conditions, reasonable and supportable forecasts that affect the expected collectability
of the future cash flows of the instrument.

In applying this forward-looking approach, a distinction is made between:

• financial instruments that have not deteriorated significantly in credit quality since initial recognition or that have
low credit risk (‘Stage 1’) and
• financial instruments that have deteriorated significantly in credit quality since initial recognition and whose
credit risk is not low (‘Stage 2’).

‘Stage 3’ would cover financial assets that have objective evidence of impairment at the reporting date.

‘12-month expected credit losses’ are recognised for the first category while ‘lifetime expected credit losses’ are
recognised for the second category.

Measurement of the expected credit losses is determined by a probability-weighted estimate of credit losses over the
expected life of the financial instrument.

HEINEKEN SAINT LUCIA LTD. 2023 ANNUAL REPORT | Strengthening our Foundations for a more Sustainable Future
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

2 Summary of significant accounting policies…continued

Financial instruments…continued

Trade receivables
The Company makes use of a simplified approach in accounting for trade and other receivables as well as contract
assets and records the loss allowance as lifetime expected credit losses. These are the expected shortfalls in
contractual cash flows, considering the potential for default at any point during the life of the financial instrument.
In calculating, the Company uses its historical experience, external indicators and forward-looking information to
calculate the expected credit losses using a provision matrix.

The Company assess impairment of trade receivables on a collective basis as they possess shared credit risk
characteristics they have been grouped based on the days past due.

Classification and measurement of financial liabilities

The Company’s financial liabilities include borrowings, trade and other payables and derivative financial instruments.

Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs unless the
Company designated a financial liability at fair value through profit or loss.

Subsequently, financial liabilities are measured at amortised cost using the effective interest method except for
derivatives and financial liabilities designated at FVTPL, which are carried subsequently at fair value with gains or
losses recognised in profit or loss (other than derivative financial instruments that are designated and effective as
hedging instruments).

All interest-related charges and, if applicable, changes in an instrument’s fair value that are reported in profit or loss
are included within finance costs or finance income.

Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is determined on a weighted average basis.
The cost of finished goods and work-in-process comprises raw materials, direct labour, other direct costs and related
production overheads on the basis of normal operating capacity. Net realisable value is the estimated selling price in
the ordinary course of business less applicable variable selling expenses.

33
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

2 Summary of significant accounting policies…continued

Property, plant and equipment

Land and buildings comprise mainly factories and office. Land is stated at historical cost. All other property, plant and
equipment are stated at historical cost less accumulated depreciation. Historical cost includes expenditure that is
directly attributable to the acquisition of the items.

The assets’ residual values and useful lives are reviewed and adjusted if appropriate, at each balance sheet date.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the Company and the cost of
the item can be reliably measured. All other repairs and maintenance are charged to the statement of comprehensive
income during the financial period in which they were incurred.

Land is not depreciated. No depreciation is also provided on capital work-in-progress until the assets involved have
been completed and are put into use. Depreciation on other assets is calculated using the straight-line method to
allocate their cost to their residual values over their estimated useful lives as follows:

Buildings 5 - 40 years
Leasehold improvements 10 years
Plant and machinery 3 - 30 years
Returnable packaging materials 4 years
Motor vehicles 5 years
Furniture and equipment 5 - 10 years

The asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is
greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in
the statement of comprehensive income.

Leased assets

(a) The Company as a lessee

The Company assesses whether a contract is or contains a lease at the inception of the contract. A lease conveys the
right to direct the use and obtain substantially all of the economic benefits of an identified asset for a period of time
in exchange for consideration.

Measurement and recognition of leases as a lessee

At lease commencement date, the Company recognises a right-of-use asset and a lease liability on the balance
sheet. The right-of-use asset is measured at cost, which is made up of the initial measurement of the lease liability,
any initial direct costs incurred by the Company, an estimate of any costs to dismantle and remove the asset at the
end of the lease, and any lease payments made in advance of the lease commencement date (net of any incentives
received).

The Company depreciated the right-of-use assets on a straight-line basis from the lease commencement date to the
earlier of the end of useful life of the right-of-use asset or the end of the lease term. The Company also assesses the
right-of-use asset fir impairment when such indicator exists.

HEINEKEN SAINT LUCIA LTD. 2023 ANNUAL REPORT | Strengthening our Foundations for a more Sustainable Future
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

2 Summary of significant accounting policies…continued

Leased assets

(a) The Company as a lessee…continued

At the commencement date, the Company measures the lease liability at the present value of the lease payments
unpaid at that date, discounted using the interest rate implicit in the lease if that rate is readily available, or the
Company’s incremental borrowing rate. The incremental borrowing rate is the estimated rate that the Company
would have to pay to borrow the same amount over a similar term, and with similar security to obtain an asset
of equivalent value. This rate is adjusted should the lessee entity should have a different risk profile to that of the
Company.

Lease payments included in the measurement of the lease liability are made up of fixed payments (including in
substance fixed), variable payments based on an index or rate, amounts expected to be payable under a residual
value guarantee and payments arising from options reasonably certain to be exercised.

Subsequent to initial measurement, the liability will be reduced by lease payments that are allocated between
repayments of principal and financial costs. The finance cost is the amount that produces a constant periodic rate of
interest on the remaining balance of the lease liability.

The lease liability is reassessed when there is a change in the lease payments. Changes in lease payments arising
from a change in the lease term or a change in the assessment of an option to purchase a leased asset. The revised
lease payments are discounted using the Company’s incremental borrowing rate at the date of reassessment when
the rate implicit in the lease cannot be readily determined. The amount of the remeasurement of the lease liability is
reflected as an adjustment to the carrying amount of the right-of-use asset. The exception being when the carrying
amount of the right-of-use asset has been reduced to zero, then any excess is recognised in profit or loss. Any gain
or loss relating to the partial or full termination of the lease is recognised in profit or loss. The right-of-use asset is
adjusted for all other lease modifications.

The Company has elected to account for short-term leases and leases of low-value assets using the practical
expedients. Instead of recognising a right-of-use asset and lease liability, the payments in relation to these are
recognised as an expense in profit or loss on a straight-line basis over the lease term.

On the balance sheet, right-of-use assets have been included in property, plant and equipment and lease liability
have been included in trade and other payables.

(b) The Company as a lessor

The Company also earns rental income from sub-lease of its leased properties. The Company recognises the lease
receivable at the present value of the lease receivables from the sub-lease at that date, discounted using the interest
rate implicit in the lease if that rate is readily available, or the Company’s incremental borrowing rate.

Intangible asset
Acquired computer programs are capitalised on the basis of the costs incurred to acquire and bring to use the specific
software. These costs are amortised over their estimated useful lives for a period of 3 years.

Costs associated with developing or maintaining computer software licences are recognised as an expense as
incurred.

35
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

2 Summary of significant accounting policies…continued

Goodwill
Goodwill represents the future economic benefits arising from a business combination that are not individually
identified and separately recognised. Goodwill is carried at cost less accumulated impairment losses.

Impairment of non-financial assets

For impairment assessment purposes, assets are grouped at the lowest levels for which there are largely independent
cash inflows (cash-generating units). As a result, some assets are tested individually for impairment and some are
tested at cash-generating unit level. Goodwill is allocated to those cash-generating units that are expected to
benefit from synergies of a related business combination and represent the lowest level within the Group at which
management monitors goodwill.

Cash-generating units to which goodwill and intangible asset that has an indefinite useful life or is not yet available
for use has been allocated (determined by the Group’s management as equivalent to its operating segments) are
tested for impairment at least annually. All other individual assets or cash-generating units are tested for impairment
whenever events or changes in circumstances indicate the carrying amount may not be recoverable.

An impairment loss is recognised for the amount by which the asset’s (or cash-generating unit’s) carrying amount
exceeds its recoverable amount, which is the higher of fair value less costs of disposal and value-in-use. To determine
the value-in-use, management estimates expected future cash flows from each cash-generating unit and determines
a suitable discount rate in order to calculate the present value of those cash flows. The data used for impairment
testing procedures is directly linked to the Group’s latest approved budget, adjusted as necessary to exclude the
effects of future reorganisations and asset enhancements. Discount factors are determined individually for each
cash-generating unit and reflect current market assessments of the time value of money and asset-specific risk
factors.

Impairment losses for cash-generating units reduce first the carrying amount of any goodwill allocated to the cash-
generating unit. Any remaining impairment loss is charged pro rata to the other assets in the cash-generating unit.
With the exception of goodwill, all assets are subsequently reassessed for indications an impairment loss previously
recognised may no longer exist. An impairment loss is reversed if the asset’s or cash-generating unit’s recoverable
amount exceeds its carrying amount.

Borrowings
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently
carried at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value
is recognised in the statement of comprehensive income over the period of the borrowings using the effective interest
method. Interest expense is recorded on an accruals basis over the period it becomes due.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of
the liability for at least 12 months after the balance sheet date.

HEINEKEN SAINT LUCIA LTD. 2023 ANNUAL REPORT | Strengthening our Foundations for a more Sustainable Future
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

2 Summary of significant accounting policies…continued

Trade and other payables

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business
from suppliers. Other payables are recognised in the period in which the related money, goods or services are received
or when a legally enforceable claim against the Company is established. These are recognised initially at fair value
and subsequently measured at amortised cost using effective interest. Trade and other payables are classified as
current liabilities if payment is due within one year or less. Otherwise, they are presented as non-current liabilities.

Returnable packaging materials

Certain products of the Company are sold in returnable containers in specified markets. The cost of returnable
containers in circulation is included in property, plant and equipment and the related refundable deposits are carried
as refundable packaging deposits in the balance sheet.

Related party relationships and transactions

Related party relationship exists when one party has the ability to control, directly, or indirectly through one or more
intermediaries, the other party or exercise significant influence over the other party in making financial and operating
decisions. Such relationship also exists between and/or among entities which are under common control with the
reporting enterprise, or between, and/or among the reporting enterprise and its key management personnel, directors,
or its shareholders. In considering each possible related party relationship, attention is directed to the substance of
the relationship, and not merely the legal form.

Transactions between related parties are accounted for at arms’ length prices or on terms similar to those offered to
non-related entities in an economically comparable market.

Income taxes

(a) Current tax

The current income tax expense is calculated on the basis of tax laws enacted or substantively enacted at the balance
sheet date where the Company operates and generates taxable income. Management periodically evaluates positions
taken in tax returns with respect to situations in which the applicable tax regulation is subject to interpretation and
establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

(b) Deferred tax

Deferred income tax is recognised, using the liability method, on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is determined
using tax rates and laws that have been enacted or substantially enacted by the balance sheet date and are expected
to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

The principal temporary timing differences arise from depreciation on property, plant and equipment and retirement
benefit asset or liability.

Provisions
Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events;
it is more likely than not that an outflow of resources will be required to settle the obligation; and the amount can be
reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle
the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks
specific to the obligation.

37
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

2 Summary of significant accounting policies…continued

Share capital
Ordinary shares are classified as equity.

Dividend distribution
Dividend distribution to the Company’s shareholders is recognised as a liability in the financial statements in the
period in which the dividends are approved by the Company’s shareholders.

Revenue and expense recognition

Revenue arises mainly from the sale of goods on wholesale and retail, interest and dividend income.

To determine whether to recognise revenue, the Company follows a 5-step process:

1. Identifying the contract with a customer

2. Identifying the performance obligations
3. Determining the transaction price
4. Allocating the transaction price to the performance obligations
5. Recognising revenue when/as performance obligation(s) are satisfied.

In all cases, the total transaction price for a contract is allocated amongst the various performance obligations based
on their relative stand-alone selling prices. The transaction price for a contract excludes any amounts collected on
behalf of third parties.

Revenue is recognised either at a point in time or over time, when (or as) the Company satisfies performance
obligations by transferring the promised goods or services to its customers.

(a) Sales of goods-wholesale

Sales of goods are recognised when the Company has delivered products to the customer, the customer has accepted
the products and collectibility of the related receivables is reasonably assured.

(b) Sales of goods-retail

Sales of goods are recognised when the Company sells a product to a customer. Retail sales are usually in cash. The
recorded revenue is the gross amount of the sale.

(c) Interest income

Interest income is recognised on a time-proportion basis using the effective interest rate method.

Excise tax expense is recognised based on percentage of the sales of goods and is shown as a deduction against
revenue in the statement of comprehensive income.

Cost and expenses are recognised as incurred.

HEINEKEN SAINT LUCIA LTD. 2023 ANNUAL REPORT | Strengthening our Foundations for a more Sustainable Future
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

2 Summary of significant accounting policies…continued

Employee benefits
The Company has a defined contribution plan and a closed defined benefit plan. The plans are generally funded
through payments to insurance companies or trustee-administered funds, determined by periodic actuarial
calculations. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a
separate entity. The Company has no legal or constructive obligations to pay further contributions if the fund does
not hold sufficient assets to pay covered employees the benefits relating to employee service in the current and prior
periods. A defined benefit plan is a pension plan that defines an amount of pension benefit that an employee will
receive on retirement, usually dependent on one or more factors such as age, years of service and compensation.

A defined benefit plan was established for all monthly paid employees; however, accrual of pension benefits in
accordance with the existing pension formula stopped on February 28, 2015. From March 1, 2015 for both the
monthly and hourly paid employees, the Company contributes to a Money Purchase Scheme. Such contributions
are fixed and are charged to the statement of comprehensive income in the period to which the contributions relate.

The asset or liability recognised in the balance sheet in respect of defined benefit pension plans is the present value
of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The defined benefit
obligation is calculated annually by independent actuaries using the projected unit credit method. The present value
of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates
of long-term government securities that are denominated in the currency in which the benefit will be paid, and that
have terms to maturity approximating to the terms of the related pension obligation.

The current service cost of the defined benefit plan, recognised in the income statement in employee benefit expense,
except where included in the cost of an asset, reflects the increase in the defined benefit obligation resulting from
employee service in the current year, benefit changes curtailments and settlements.

Past-service costs are recognised immediately in the statement of comprehensive income.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation
and the fair value of plan assets. This cost is included in employee benefit expense in the income statement.

Actuarial gains and losses arising from changes in actuarial assumptions are charged or credited to other
comprehensive income in the period in which they arise.

The plans expose the Company to actuarial risks such as interest rate risk, investment risk, longevity risk, and inflation
risk.

39
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

2 Summary of significant accounting policies…continued

Foreign currency translation

(a) Functional and presentation currency

Items in the financial statements are measured using the currency of the primary economic environment in which
the entity operates (“the functional currency”). The financial statements are presented in Eastern Caribbean dollars,
which is the Company’s functional and presentation currency.

(b) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and
from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies
are recognised in the statement of comprehensive income.

Subsequent events
Post year-end events that provide additional information about the Company’s position at the balance sheet date
(adjusting events) are reflected in the Company’s financial statements. Post year-end events that are not adjusting
events are disclosed when material to the financial statements, if any.

3. Financial risk management

Financial risk factors

The Company’s activities expose it to a variety of financial risk: market risks (including foreign exchange, price risk and
interest rate risk), credit risk and liquidity risk. The Company’s overall risk management programme focuses on the
unpredictability of the financial markets and seeks to minimise potential adverse effects on the Company’s financial
performance.

Risk management is carried out by the finance department under policies approved by the board of directors. The
board provides written principles for overall risk management, as well as written policies covering specific areas such
as market risk, credit risk and liquidity risk. Risk management policies are designed to identify and analyse these risks,
to set appropriate risk limits and controls, and to monitor the risks. The board reviews its risk management policies to
reflect changes in markets, products and emerging best practices.

(a) Market risk

(i) Foreign exchange risk

The Company trades internationally and is exposed to foreign exchange risk arising from various currency exposures,
primarily with respect to the United States dollars and Euros. The exchange rate of the Eastern Caribbean dollar (EC$)
to the United States dollar (US$) has been formally pegged at EC$2.70 = US$1.00 since July 1976. Foreign exchange
risks arise when future commercial transactions or recognised assets or liabilities are denominated in a currency that
is not the Company’s functional currency. Management does not believe significant foreign exchange risk exists as
at December 31, 2023.

HEINEKEN SAINT LUCIA LTD. 2023 ANNUAL REPORT | Strengthening our Foundations for a more Sustainable Future
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

3 Financial risk management…continued

(a) Market risk …continued

(ii) Cash flow and fair value interest rate risk

The Company is exposed to cash flow and fair value interest rate risk, as the Company has financial instruments
with variable rates and are classified as available for sale or fair value through profit or loss. The Company has loan
payable to related party with interest rate based on USD LIBOR plus a margin of 175 basis points. An increase or
decrease in interest rates by 1% will increase or decrease finance costs by $161,100.

(iii) Price risk

The Company is not exposed to equity securities price risk because the Company does not hold any equity securities
as at year end.

The Company is not exposed to commodity price risk.

(b) Credit risk

Credit risk refers to risk that a counterparty will cause a financial loss for the Company by failing to discharge an
obligation. The amount of the Company’s maximum exposure to credit risk is indicated by the carrying amount of
its financial assets.

Significant changes in the economy, or in the health of a particular industry segment that may represent a
concentration in the Company’s portfolio, could result in losses that are different from those provided for at the
reporting date. Management therefore carefully manages its exposure to credit risk.

Credit risk arises principally in cash in banks, as well as credit exposure to customers, including outstanding receivables
and committed transactions. For banks and financial institutions, only those with good financial condition are
accepted. The Company assesses the credit quality of the customer, taking into account its financial position, past
experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with
limits set by the board. The utilisation of credit limits is regularly monitored.

Trade receivables
The Company applies the IFRS 9 simplified model of recognising lifetime expected credit losses for all trade receivables
as these items do not have a significant financing component.

In measuring the expected credit losses, the trade receivables have been assessed on a collective basis as they
possess shared credit risk characteristics. They have been grouped based on the days past due.

The expected loss rates are based on the payment profile for sales over the past 48 months before
December 31, 2023 as well as the corresponding historical credit losses during that period. The historical rates are
adjusted to reflect current and forward looking macroeconomic factors affecting the customer’s ability to settle the
amount outstanding. However, given the short period exposed to credit risk, the impact of these macroeconomic
factors has not been considered significant within the reporting period (see Note 13).

41
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

3 Financial risk management…continued

(c) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an
adequate amount of committed credit facilities. Due to the dynamic nature of the underlying business, the Company
attempts to maintain flexibility in funding by maintaining availability from the realization of assets derived from
trading activities and credit facilities from its related parties. Management monitors the Company’s liquidity position
on the basis of expected cash flow.

The table below analyses the Company’s financial liabilities into relevant maturity groupings based on the remaining
period at the balance sheet to the contractual maturity date. The amounts disclosed in the table are the contractual
undiscounted cash flows. Balances due within 12 months are estimated to equal their carrying balances as the impact
of discounting is not significant.
Between Between
Less than 1 and 2 3 and 5 Over
1 year years years 5 years Total
$ $ $ $ $

At December 31, 2023

Trade and other payables 19,658,899 – – – 19,658,899

Lease payables 691,200 691,200 2,073,600 5,184,000 8,640,000
Refundable packaging deposits 1,359,184 – – – 1,359,184
Borrowings 17,650,176 12,995,456 12,298,597 – 42,944,229
Due to related parties 7,030,109 – – – 7,030,109
Dividends payable 1,064,550 – – – 1,064,550
Income tax payables 1,491,003 – – – 1,491,003

48,945,121 13,686,656 14,372,197 5,184,000 82,187,974

At December 31, 2022

Trade and other payables 27,791,971 – – – 27,791,971

Lease payables 691,200 691,200 2,073,600 5,875,200 9,331,200
Refundable packaging deposits 2,779,365 – – – 2,779,365
Borrowings 760,193 18,760,193 23,874,920 – 43,395,306
Due to related parties 4,435,644 – – – 4,435,644
Dividends payable 1,590,195 – – – 1,590,195
Income tax payables 2,602,969 – – – 2,602,969

40,651,537 19,451,393 25,948,520 5,875,200 91,926,650

Capital risk management

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going
concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain optimal
capital to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the
amount of dividends paid to shareholders or issue new shares or sell assets to reduce debt.

The Company monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by total
capital. Net debt is calculated as total borrowings (including ‘current and non-current borrowings’ as shown in the
balance sheet) less cash. Total capital is calculated as ‘equity’ as shown in the balance sheet plus net debt.

HEINEKEN SAINT LUCIA LTD. 2023 ANNUAL REPORT | Strengthening our Foundations for a more Sustainable Future
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

3 Financial risk management…continued

Capital risk management …continued

During 2020, the Company’s borrowings exceeded total cash. Accordingly, net debt is positive for purposes of the
gearing ratio calculation. The gearing ratios as at December 31, 2023 and 2022 are shown below.
2023 2022
$ $

Total borrowings (Note 15) 49,506,710 49,564,929

Less: cash (Note 14) (9,773,002) (5,491,326)

Net debt 39,733,708 44,073,603

Total equity 106,832,561 99,478,708

Total capital 146,566,269 143,552,311

Gearing ratio __27.1% 30.7%

Fair value estimation of financial assets and liabilities
Fair value amounts represent estimates of the consideration that would currently be agreed upon between
knowledgeable, willing parties who are under no compulsion to act and is best evidenced by a quoted market value
if one exists.

The carrying value of cash, trade and other receivables, trade and other payables, and due to and from related
parties approximate their fair values due to the short-term maturity of these items.

The fair value of borrowings for disclosure purposes is estimated by discounting the future contractual cash flows at
the current market rate that is available to the Company in respect of similar financial instruments.

The carrying amounts and fair values of borrowings are as follows:

Carrying amount Fair value
2023 2022 2023 2022
$ $ $ $

Borrowings 49,506,710 49,564,929 48,989,656 49,230,584

Fair value hierarchy

IFRS 7 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are
observable or unobservable. Observable inputs reflect market data obtained from independent sources; unobservable
inputs reflect the Company’s market assumptions. These two types of inputs have created the following fair value
hierarchy:

• Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities. This level includes listed
equity securities and debt instruments on exchanges.
• Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (that is, as prices) or indirectly (that is, derived from prices).
• Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs).

This hierarchy requires the use of observable market data when available. The Company considers relevant and
observable market prices in its valuations where possible.

43
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

4. Critical judgements in applying the entity’s accounting policies

The Company makes estimates and assumptions that affect the reported amounts of assets and liabilities within
the next financial year. Estimates and judgements are continually evaluated and based on historic experience and
other factors, including expectation of future events that are believed to be reasonable under the circumstances. The
resulting accounting estimates will, by definition, seldom equal the related actual results. The items which may have
the most effect on the Company’s financial statements are set out below:

(a) Refundable packaging deposits

The Company has recognised liabilities totalling $1,359,184 (2022 - $2,779,365) as a provision for deposit liability.
This is based on management’s best estimate based on past experiences. Where the final outcome is different from
the amounts that were initially recorded, such differences will impact the statement of comprehensive income in the
period in which such determination is made.

(b) Provision for impairment of receivables

The Company makes use of a simplified approach in accounting for trade and other receivables as well as contract
assets and records the loss allowance as lifetime expected credit losses. These are the expected shortfalls in
contractual cash flows, considering the potential for default at any point during the life of the financial instrument.
In calculating, the Company uses its historical experience, external indicators and forward-looking information to
calculate the expected credit losses using a provision matrix.

The Company assess impairment of trade receivables on a collective basis as they possess shared credit risk
characteristics they have been grouped based on the days past due.

(c) Income taxes

Significant judgment is required in determining the provision for income taxes including any liabilities for tax audit
issues. There are some transactions and calculations for which the ultimate tax determination is uncertain during the
ordinary course of business. Where the final tax outcome of these matters is different from the amounts that were
initially recorded, such differences will impact the income tax and deferred income tax provisions in the period in
which such determination is made.

(d) Defined benefit obligation (DBO)

Management’s estimate of the DBO is based on a number of critical underlying assumptions such as standard rates
of inflation, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may
significantly impact the DBO amount and the annual defined benefit expenses (Note 7).

HEINEKEN SAINT LUCIA LTD. 2023 ANNUAL REPORT | Strengthening our Foundations for a more Sustainable Future
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

5. Property, plant and equipment

Returnable Furniture Right-
Land and Plant and Packaging Motor and office of- use Construction
building machinery material vehicles equipment assets in progress Total
$ $ $ $ $ $ $ $
At January 1, 2022
Cost 42,040,206 140,995,285 34,086,456 8,023,084 10,279,938 7,664,141 7,030,594 250,119,704
Accumulated
depreciation (20,366,293) (85,285,501) (27,912,569) (6,940,090) (7,944,308) (255,471) – (148,704,232)

Net book amount 21,673,913 55,709,784 6,173,887 1,082,994 2,335,630 7,408,670 7,030,594 101,415,472

Year ended December

31, 2022
Opening net book amount 21,673,913 55,709,784 6,173,887 1,082,994 2,335,630 7,408,670 7,030,594 101,415,472
Additions 219,986 1,612,500 – 408,078 805,946 – 11,483,368 14,529,878
Transfers 2,842,436 5,629,530 5,172,445 476,175 738,334 – (14,858,920) –
Reclassification-cost – – – – – – (937,330) (937,330)
Disposals (458,473) (16,003,695) (7,337,221) (2,708,321) (3,033,884) – – (29,541,594)
Write back on disposals 458,473 16,003,695 7,337,221 2,503,046 3,026,943 – – 29,329,378
Depreciation (Note 23) (1,184,004) (5,599,433) (3,383,603) (590,711) (1,576,940) (510,943) – (12,845,634)

Closing net book amount 23,552,331 57,352,381 7,962,729 1,171,261 2,296,029 6,897,727 2,717,712 101,950,170

At December 31, 2022

Cost 44,644,155 132,233,620 31,921,680 6,199,016 8,790,333 7,664,141 2,717,712 234,170,657
Accumulated
depreciation (21,091,824) (74,881,239) (23,958,951) (5,027,755) (6,494,304) (766,414) – (132,220,487)

Net book amount 23,552,331 57,352,381 7,962,729 1,171,261 2,296,029 6,897,727 2,717,712 101,950,170

Year ended December

31, 2023
Opening net book amount 23,552,331 57,352,381 7,962,729 1,171,261 2,296,029 6,897,727 2,717,712 101,950,170
Additions 4,374 13,586 2,758,950 37,047 781,866 – 8,386,955 11,982,778
Transfers 936,812 1,949,004 2,399,754 2,270,294 1,457,104 – (9,012,968) –
Reclassification-cost – – 373,202 – (373,202) – (445,968) (445,968)
Depreciation (Note 23) (1,237,009) (5,432,870) (3,983,086) (640,858) (1,035,739) (510,943) – (12,840,505)

Closing net book amount 23,256,508 53,882,101 9,511,549 2,837,744 3,126,058 6,386,784 1,645,731 100,646,475

At December 31, 2023

Cost 45,585,341 134,196,210 37,453,586 8,506,357 10,656,101 7,664,141 1,645,731 245,707,467
Accumulated
depreciation (22,328,833) (80,314,109) (27,942,037) (5,668,613) (7,530,043) (1,277,357) – (145,060,992)

Net book amount 23,256,508 53,882,101 9,511,549 2,837,744 3,126,058 6,386,784 1,645,731 100,646,475

45
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

6. Intangible assets
Computer
software
$
At January 1, 2022

Cost 5,157,819
Accumulated amortisation (2,635,111)

Net book amount 2,522,708

Year ended December 31, 2022

Opening net book amount 2,522,708

Transfer from construction-in-progress 937,330
Disposals (1,383,646)
Write-back on disposals 1,383,646
Amortisation charge (Note 23) (689,176)

Closing net book amount 2,770,862

At December 31, 2022

Cost 4,711,503
Accumulated amortisation (1,940,641)

Net book amount 2,770,862

Year ended December 31, 2023

Opening net book amount 2,770,862

Transfer from construction-in-progress 445,968
Amortisation charge (Note 23) (527,520)

Closing net book amount 2,689,310

At December 31, 2023

Cost 5,157,471
Accumulated amortisation (2,468,161)

Net book amount 2,689,310

HEINEKEN SAINT LUCIA LTD. 2023 ANNUAL REPORT | Strengthening our Foundations for a more Sustainable Future
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

7. Retirement benefit assets

The Company provided retirement benefits to monthly paid employees; however, the plan was closed and accrual of
pension benefits in accordance with the existing pension formula stopped on February 28, 2015. Members’ accrued
pensions for pre-March 2015 service are calculated using their final pensionable pay as at February 28, 2015. The
Company intends to use its discretion, with the Trustees’ consent and subject to the Plan’s financial status, to increase
these accrued pensions in line with the annual general pay increases granted to members up to a maximum of 3%
per annum, in order to prevent any erosion due to inflation.

From November 1, 2015 the assets of the plan are managed by Royal Bank of Canada. The pension plan is funded
by payments from employees and the Company, taking account of the recommendations of independent qualified
actuaries.

The pension obligation is determined using the “Projected Unit Credit Cost” (PUC) method. Under the PUC method,
the annual normal cost for the portion of the retirement is determined as the amount necessary to provide for the
portion of the retirement benefit accruing during the year.

The amount recognised in the balance sheet is determined as follows:

2023 2022
$ $

Present value of funded obligations (5,560,963) (5,393,730)

Fair value of plan assets 9,764,831 9,377,987

Retirement benefit assets in the balance sheet 4,203,868 3,984,257

The movement in the retirement benefit obligation over the year is as follows:

2023 2022
$ $

Present value of obligation, January 1 5,393,730 5,631,760

Interest cost 356,046 372,522
Actual benefits paid (250,416) (466,955)
Actuarial (gain)/loss on obligation 61,603 (143,597)

Present value of obligation, December 31 5,560,963 5,393,730

47
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

7. Retirement benefit assets…continued

The movement in the fair value of plan assets over the year is as follows:
2023 2022
$ $

Fair value of plan assets, January 1 9,377,987 9,604,257

Interest income 634,944 650,597
Return on plan assets, excluding interest income 2,316 (409,912)
Actual benefits paid (250,416) (466,955)

Fair value of plan assets, December 31 9,764,831 9,377,987

Plan assets do not comprise any of the Company’s own financial instruments or any assets used by Group companies.
Plan assets can be broken down into the following categories of investments:

2023 2022
$ $

Cash and cash equivalents 2,072,026 1,868,633

Regional equity instruments 769,638 944,034
Overseas equity instruments 1,502,092 1,315,756
Government bonds and treasury bills 5,387,345 5,249,564
Corporate bonds 33,730 –

Total included in staff costs 9,764,831 9,377,987

All equity and debt instruments have quoted prices in active markets (Level 1, 2). The defined benefit obligation and
plan assets are composed by geographical location as follows:

Caricom US Others Total

$ $ $ $

At December 31, 2023

Defined benefit obligation (5,560,963) – – (5,560,963)

Fair value of plan assets 7,459,371 1,535,822 769,638 9,764,831

1,898,408 1,535,822 769,638 4,203,868

At December 31, 2022

Defined benefit obligation (5,393,730) – – (5,393,730)

Fair value of plan assets 7,118,197 1,315,756 944,034 9,377,987

1,724,467 1,315,756 944,034 3,984,257

HEINEKEN SAINT LUCIA LTD. 2023 ANNUAL REPORT | Strengthening our Foundations for a more Sustainable Future
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

7. Retirement benefit assets…continued

The amounts recognised in the statement of comprehensive income are as follows:

2023 2022
$ $

Interest cost 356,046 372,522

Interest income (634,944) (650,597)

Total included in staff costs (278,898) (278,075)

The actual return on plan assets was $637,260 (2022 - $240,685).

Movement in the asset recognised in the balance sheet:

2023 2022
$ $

At beginning of year 3,984,257 3,972,497

Net pension cost 278,898 278,075
Re-measurements recognised in other comprehensive income (59,287) (266,315)

At end of year 4,203,868 3,984,257

The Company does not expect to further contribute to the fund.

The defined benefit obligation is allocated between the members of the plan as follows:
2023 2022
% %

Active members 70 56
Deferred members 15 15
Pensioners 15 29

2023 2022

Weighted average duration of the defined benefit obligation at year end 11.8 years 12.4 years

The principal actuarial assumptions used were as follows:

2023 2022
% %

Discount rate 7.0 7.0

Future salary increases 3.0 3.0

49
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

7. Retirement benefit assets…continued

Assumptions regarding future mortality experience are set based on 1994 group annuity mortality static tables for
males and females. The life expectancies underlying the value of the defined benefit obligation as at December 31,
2023 are as follows:
2023 2022
% %

Life expectancy at age 65 for current pensioner in years:

Male 17.6 17.5
Female 21.6 21.5

Life expectancy at age 65 for current members age 45 in years:

Male 18.5 18.4
Female 22.5 22.3

The significant actuarial assumptions for the determination of the defined benefit IAS 19 obligation are the
discount rate, future promotional salary increases and increase in average life expectancy. The calculation of the
net defined benefit liability is sensitive to these assumptions. The following table summarises the effects of changes
in these actuarial assumptions on the defined benefit liability at December 31, 2023:

Changes in the significant actuarial assumptions:

December 31, 2023
Decrease to Increase to

Discount rate 6.75% 7.25%

Increase/(decrease) in the defined benefit liability 157,129 (150,274)

Future salary increases 2.75% 3.25%

(Decrease)/increase in the defined benefit liability (29,403) 30,131

December 31, 2022

Decrease to Increase to

Discount rate 6.75% 7.25%

Increase/(decrease) in the defined benefit liability 160,111 (152,956)

Future salary increases 2.75% 3.25%

(Decrease)/increase in the defined benefit liability (34,624) 35,437

An increase of 1 year in the assumed life expectancies shown above would increase the defined benefit obligation
at December 31, 2023 by $107,712 (2022 - $102,902).

These sensitivities were calculated by re-calculating the defined benefit obligations using the revised assumptions.

HEINEKEN SAINT LUCIA LTD. 2023 ANNUAL REPORT | Strengthening our Foundations for a more Sustainable Future
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

7. Retirement benefit assets…continued

The amount of pension plan, experience gains/(losses) adjustments on plan assets and liabilities for the current and
previous four years are as follows:
2023 2022 2021 2020 2019
$ $ $ $ $

Defined benefit obligation (5,560,963) (5,393,730) (5,631,760) (5,808,690) (5,557,062)

Fair value of plan assets 9,764,831 9,377,987 9,604,257 9,377,433 8,767,432

Surplus 4,203,868 3,984,257 3,972,497 3,568,743 3,210,370

Experience adjustments
Plan liabilities (61,603) 143,597 63,973 (12,741) (70,066)
Plan assets 2,316 (409,912) 89,969 (87,426) 17,385

8. Goodwill
2023 2022
$ $

Goodwill 44,076,862 44,076,862

On September 1, 2016, WLBL signed a Share Purchase Agreement where, it had agreed to purchase 100% of the
shares of DBC from DBC Investments Ltd. (“DBCIL”).

Goodwill of $44,076,862 is primarily related to synergies expected to be derived from increased economies of scale,
deepened brand portfolio, access to new markets and enhance operating and administrative efficiencies. Goodwill
has been allocated to the cash generating units that are expected to benefit from the business combination.

On February 1, 2021, WLBL and DBC was amalgamated into Heineken Saint Lucia Limited.

Impairment testing
The Company tests cash generating units with goodwill annually for impairment, or more frequently if there is an
indication that a cash-generating unit to which goodwill has been allocated may be impaired. The recoverable
amount of a cash generating unit is the higher of the cash generating unit’s fair value less cost of disposal (FVLCD)
and its value-in-use.

FVLCD is determined based on the market capitalization approach, using the turnover and earnings multiples derived
from observable market data. The fair value measurement is categorised as a level 2 fair value based on the inputs
in the valuation techniques used.

Calculation of the value-in-use is determined by covering a detailed four-year forecast approved by the management,
followed by an extrapolation of expected cash flows for the remaining useful lives using a declining growth rate
determined by management. The present value of the expected cash flows of each cash generating unit is determined
by applying a suitable discount rate reflecting current market assessments of the time value of money.

51
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

8. Goodwill…continued

The estimate of fair value less cost to sell is determined based on operating profit.

Under the income approach, management’s key assumptions include stable profit margins, based on past experience
in this market. The Company’s management believes this is the best available input for forecasting this market.

The recoverable amount was substantially in excess of its carrying amount. A 1% decrease in operating profit would
reduce the headroom by $241,943 in 2023 (2022 - $233,654) but would not result in an impairment loss.

The assumptions used follows:

2023 2022

Growth rate 2.0% 2.0%

Discount rate 9.5% 9.6%

Growth rates
The growth rates reflect the expected annual long-term inflation, based on external sources.

Discount rates
The discount rates reflect appropriate adjustments relating to market risk and specific risk factors of the Company.

Cash flow assumptions

Cash flows are projected based on actual operating results and the four-year business plan. Cash flows for the further
six years were extrapolated using expected annual growth rates. Management believes that this period is justified
due to the long-term development of the local beverage business and past experiences.

9. Other non-current assets

2023 2022
$ $

Loan receivable from customer (Note 13) - 216,425

10. Leases

Lease receivables and payables are presented in the balance sheet as follows:

2023 2022
$ $
Lease payables

Current, shown under trade and other payables (Note 18) 414,289 396,927
Non-current, shown under other non-current liabilities (Note 17) 6,288,504 6,702,793

6,702,793 7,099,720

HEINEKEN SAINT LUCIA LTD. 2023 ANNUAL REPORT | Strengthening our Foundations for a more Sustainable Future
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

10. Leases…continued

The Company has leases for office and warehouse building. With the exception of short-term leases and leases of
low-value underlying assets, each lease is reflected on the balance sheet as a right of use asset under property, plant
and equipment and lease payables under trade and other payables and other non-current liabilities. Variable lease
payments which do not depend on an index or a rate (such as lease payments based on a percentage of Company
sales) are excluded from the initial measurement of the lease liability and asset. The Company classified its right-of-
use assets in a consistent manner to its property, plant and equipment (see Note 5).

Each lease, except for the lease mentioned above, generally impose a restriction that, unless there is a contractual
right for the Company to sublet the asset to another party, the right-of-use asset can only be used by the Company.
Leases are either non-cancellable or may only be canceled by incurring a substantive termination fee. The Company
is prohibited from selling or pledging the underlying leased assets as security. For leases over office and warehouse
building, the Company must keep those premises in a good state of repair and return the properties in their original
condition at the end of the lease. Further, the Company must insure items of property, plant and equipment and
incur maintenance fees on such items in accordance with the lease contracts.

The table below describes the nature of the Company’s leasing activities by type of right-of-use asset recognised on
balance sheet.
No. of No. of
No. of Leases with Leases with
No. of No. of lease with variation variation
right-of- Range of Average lease with options to payments payments
use assets remaining remaining extension re- linked to an linked to an
Right-of-use assets leased term lease term options purchase index index

December 31, 2023

Warehouse and other
related facilities 1 12-13 years 12.5 – – – –

December 31, 2022

Warehouse and other
related facilities 1 13-14 years 13.5 – – – –

The lease liabilities are secured by the related underlying assets. Future minimum lease payments were as follows:

Within Within Within Over

1 year 1-2 years 3-5 years 5 years Total
$ $ $ $ $

At December 31, 2023

Lease payments 691,200 691,200 2,073,600 5,184,000 8,640,000
Finance charges (276,911) (258,790) (634,093) (767,413) (1,937,207)

414,289 432,410 1,439,507 4,416,587 6,702,793

At December 31, 2022

Lease payments 691,200 691,200 2,073,600 5,875,200 9,331,200
Finance charges (294,273) (276,911) (718,802) (941,494) (2,231,480)

396,927 414,289 1,354,798 4,933,706 7,099,720

53
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

10. Leases…continued

The Company has elected not to recognise a lease liability for short-term leases (leases with an expected term of 12
months or less) or for leases of low value assets. Payments made under such leases are expensed on a straight-line
basis. In addition, certain variable leased payments are not permitted to be recognised as lease liabilities and are
expensed as incurred.

At December 31, 2023, the Company was committed to short-term leases and the total commitment at that date
was $685,170 (2022 - $963,750).

Total cash outflow for the leases for the year ended December 31, 2023 was $1,608,113 (2022 - $1,720,735).

Additional information on the right-of-use assets is as follows:

Land and
building Total
$ $

At January 1, 2022
Carrying amount 7,664,141 7,664,141
Accumulated depreciation (255,471) (255,471)

Net book value 7,408,670 7,408,670

For year-ended December 31, 2022

Opening net book value 7,408,670 7,408,670
Depreciation (510,943) (510,943)

Closing net book value 6,897,727 6,897,727

At December 31, 2022

Carrying amount 7,664,141 7,664,141
Accumulated depreciation (766,414) (766,414)

Net book value 6,897,727 6,897,727

For year-ended December 31, 2023

Opening net book value 6,897,727 6,897,727
Depreciation (510,943) (510,943)

Closing net book value 6,386,784 6,386,784

At December 31, 2023

Carrying amount 7,664,141 7,664,141
Accumulated depreciation (1,277,357) (1,277,357)

Net book value 6,386,784 6,386,784

The right-of-use assets are included as a separate line under property, plant and equipment.

HEINEKEN SAINT LUCIA LTD. 2023 ANNUAL REPORT | Strengthening our Foundations for a more Sustainable Future
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

11. Inventories
2023 2022
$ $

11,512,504 17,754,046
Raw and packaging materials 1,347,918 1,417,275
Work in progress 3,182,466 4,146,231
Finished goods 7,077,118 5,548,066
Engineering spares and supplies 1,312,823 2,406,376
Others
24,432,829 31,271,994

During the year, the Company wrote-off inventories amounting to $1,464,393 (2022 - $1,155,450).

12. Related party balances and transactions

In the normal course of business, the Company transacts with companies which are considered related parties.
Related parties and relationships are as follows:

Related parties Relationship

Heineken International B.V. Parent company
Amstel Brouwerij B.V. Under common control
Bralima Under common control
Brouwerijen Alken-Maes Under common control
Cervecerias Baru Panama S.A. Under common control
Heineken Americas Inc. Under common control
Heineken Brouwerijen B.V. Under common control
Heineken Brouwerijen B.V. - Draught Materials Under common control
Heineken Export Group Under common control
Heineken Global Procurement B.V. Under common control
Heineken Supply Chain B.V. Under common control
Karlovacka Pivovara Croatia Under common control
Mexico CCM Under common control
Mozambique Vendas E Distribuicao Under common control
Red Stripe Heineken Under common control
Surinaamse Under common control
Tunisia Sonobra Under common control

Significant transactions with related parties are as follows:

2023 2022
$ $

Sales 25,784,623 21,515,438

Dividends 7,673,549 6,076,896
Purchases 1,788,490 3,964,175
IT services 3,393,998 3,499,291
Other fees -technical support 4,108,682 2,307,583
Management fees 496,812 421,093
Interest 1,568,267 819,202

55
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

12. Related party balances and transactions…continued

Royalties paid to the related parties in relation to the products sold by the Company are as follows:
2023 2022
$ $

Heineken International B.V. 2,663,654 2,548,241

Short-term advances from related parties are reimbursed at the original amount advanced. Related parties did not
grant or receive guarantees in relation to short-term advances. Transactions with related parties were carried out on
commercial terms and conditions and at market prices.

Year-end balances of receivables and payables arising from transactions with related parties as of
December 31, are as follows:
2023 2022
$ $

Due from related parties

Americas Export HBBV 1,543,214 1,594,036
Surinaamse 368,134 617,480
Heineken Brouwerijen B.V. 82,175 128,321
Bahamas Comwlth 56,107 –
Mozambique Vendas E Distribuicao 8,814 8,814

2,058,444 2,348,651

Due to related parties

Heineken International B.V. 3,547,794 901,158
Heineken Brouwerijen B.V. 1,320,663 656,451
Amstel Brouwerij B.V. 864,400 827,555
Brouwerijen Alken-Maes 678,858 1,002,339
Mexico CCM 234,258 52,087
Heineken Global Procurement B.V. 224,802 261,740
Heineken Supply Chain B.V. 76,958 148,114
Heineken USA 56,583 56,729
HBBV Technical Materials 22,691 –
Desnoes and Geddes Limited 3,102 251,672
Heineken Export Group – 199,551
Heineken Americas Inc. – 67,522
Cervecerias Baru Panama S.A. – 10,726

7,030,109 4,435,644

HEINEKEN SAINT LUCIA LTD. 2023 ANNUAL REPORT | Strengthening our Foundations for a more Sustainable Future
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

12. Related party balances and transactions…continued

The balance of loan and interest payable to related party as at December 31 is as follows:
2023 2022
$ $

Loan and interest payable from related party (Note 15)

Heineken International B.V. 41,038,201 42,831,411

Key management compensation as at December 31, is as follows:

2023 2022
$ $
Key management compensation
Salaries and wages 4,719,531 4,630,371
Other benefits 1,328,321 1,577,979

6,047,852 6,208,350

13. Trade and other receivables

2023 2022
$ $

Trade receivables 12,783,809 11,392,057

Allowance for expected credit losses (797,604) (1,914,244)

Trade receivable - net 11,986,205 9,477,813

Loan receivable from customer - current 216,425 368,472

Prepayments 61,075 65,598
Other receivables 359,598 266,490

12,623,303 10,178,373

The fair values of trade and other receivables approximate their carrying values.

As of December 31, 2023, trade receivables of $10,173,336 (2022 - $8,731,723) were fully performing. The credit
quality of trade receivables that are neither past due nor impaired can be assessed by reference to historical
information about counterparty default rates.

As of December 31, 2023, trade receivables of $1,812,869 (2022 - $746,090) were past due but not impaired. These
relate to a number of independent customers for whom there is no recent history of default. The ageing analysis of
these trade receivables is as follows:
2023 2022
$ $

31 - 60 days 845,782 338,003

61 - 90 days 530,119 91,852
Over 120 days 436,968 316,235

1,812,869 746,090

57
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

13. Trade and other receivables…continued

As of December 31, 2023, trade receivables of $797,604 (2022 - $1,914,244) were impaired and provided for. The
Company applies expected loss model in computing provisions for impairment of receivables. The aging of these
receivables is as follows:
2023 2022
$ $

Current 256,137 207,649

31 - 60 days 107,775 61,146
61-120 days 237,920 154,231
Over 120 days 195,772 1,491,218

797,604 1,914,244

Movements on the Company’s allowance for expected credit losses are as follows:

2023 2022
$ $
At January 1
Bad debts expense 1,914,244 2,215,954
Amounts recovered – 39,717
Amounts written back (979,472) –
(137,168) (341,427)

At December 31 797,604 1,914,244

The creation and release of provision for impaired receivables have been included in the statement of comprehensive
income. Amounts charged to the allowance account are generally written off when there is no expectation of
recovering additional cash.

The other classes within trade and other receivables do not contain impaired assets. The maximum exposure to credit
risk at the reporting date is the fair value of each class of receivable mentioned above.

The carrying amounts of the Company’s trade and other receivables are all denominated in Eastern Caribbean dollars.

The loan receivable from customer represents a loan undertaken to facilitate collection of outstanding receivables.
The loan is collectible at monthly amortisation of $30,706 for 7 years ending on November 2024. The loan receivable
bears 8% interest annually up to December 31, 2021. The interest was waived starting on January 1, 2021. From that
date, the monthly payment of $30,706 is fully applied to the principal.

2023 2022
$ $
Loan receivable from customer
Current 216,425 368,472
Non-current (Note 9) – 216,425

216,425 584,897

HEINEKEN SAINT LUCIA LTD. 2023 ANNUAL REPORT | Strengthening our Foundations for a more Sustainable Future
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

14. Cash
2023 2022
$ $

Cash on hand 10,000 10,000

Cash at bank 9,763,002 5,481,326

9,773,002 5,491,326

Cash and bank overdrafts include the following for the purposes of statement of cash flow:
2023 2022
$ $

Cash 9,773,002 5,491,326

Bank overdrafts (Note 15) (9,051,230) (7,107,945)

721,772 (1,616,619)

15. Borrowings
2023 2022
$ $
Current
Bank overdraft (Note 14) 9,051,230 7,107,945
Current portion of loan payable to related party 16,110,001 –

25,161,231 7,107,945

Non-current
Loan payable to related party (Note 12) 24,345,479 42,456,984

49,506,710 49,564,929

The outstanding loan balance as at December 31, 2023 totaling to US$14,966,667 (2022 - US$15,666,667) represent
long-term loans payable to Heineken International B.V. obtained by the Company to acquire all the shares of Du
Boulay’s Bottling Company Limited (“DBC”) and to finance Project One, the transfer of the PET line from DBC to the
Brewery.

The Company purchased all the shares in Du Boulay’s Bottling Company Limited as part of the share sale, purchase
and merger agreement dated September 1, 2017. As at year-end, the Company has outstanding loan related to
this acquisition amounting to US$5,966,667 (2022 - US$6,666,667). The loan matures on September 3, 2024 and
bears the interest rate of the desired drawing period (6 months), which interest rate is based on the USD LIBOR (as
presented on the Bloomberg two business days before the first day of such interest period) plus a margin of 175 basis
points.

Additionally, the Company was granted an additional loan amounting to US$4,500,000 on May 28, 2020, and a
further US$4,500,000 on May 07, 2021, totalling US$9,000,000, to finance Project One. The loans are unsecured,
bear interest of 1.85% and 1.55% per annum and are due on May 28, 2025 and May 16, 2026, respectively.

In 2023, finance costs relating to loan payable to related party amounts to $1,646,167 (2022 - $1,031,768).

59
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

16. Deferred tax

Deferred tax liability is calculated in full on temporary differences under the liability method using a principal tax rate
of 30%. The movement on the deferred tax liability account is as follows:
2023 2022
$ $

Beginning of year 6,732,680 5,957,668

Deferred tax expense (Note 26) 108,526 854,907
Deferred tax benefit relating to components of other comprehensive income
(17,786) (79,895)
End of year
6,823,420 6,732,680

The Company’s deferred tax liabilities are detailed below:

2023 2022
$ $

Accelerated tax depreciation 18,856,874 18,660,003

Retirement benefit assets - net 4,203,868 3,984,257
Lease liabilities - net (316,008) (201,993)

22,744,734 22,442,267

Deferred tax liabilities at income tax rate of 30% 6,823,420 6,732,680

17. Other non-current liabilities

2023 2022
$ $

Lease payables (Note 10) 6,288,504 6,702,793

Long-term incentive plan (LTIP) accruals 34,864 212,739

6,323,368 6,915,532

LTIP accruals pertains to a HEINEKEN internal incentive programme that is designed to reward senior managers for
long-term term performance by conditionally awarding performance shares

HEINEKEN SAINT LUCIA LTD. 2023 ANNUAL REPORT | Strengthening our Foundations for a more Sustainable Future
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

18. Trade and other payables

2023 2022
$ $

Trade payables 9,638,150 19,897,701

Accrued expenses 8,949,597 6,758,290
VAT payables 1,071,152 1,135,980
Lease payables - current (Note 10) 414,289 396,927

20,073,188 28,188,898

All amounts are short term, and the carrying values of trade payables and accrued liabilities are considered to be a
reasonable approximation of fair value.

19. Refundable packaging deposits

2023 2022
$ $

Refundable packaging deposits 1,359,184 2,779,365

Refundable packaging deposits are recognised upon sale of products sold in returnable containers and reversed upon
return of the containers. Estimated value of containers that may not be returned is recognised as Gain on reversal
of returnable packaging deposits under “Other income - net” account in the statements of comprehensive income.

20. Share capital

2023 2022
$ $
Share capital
Authorised:
1,500,000 ordinary shares, $10 par
Issued and fully paid:
1,274,227 ordinary shares, $10 par 12,742,270 12,742,270

Additional paid in capital 41,785,250 41,785,250

54,527,520 54,527,520

61
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

21. Dividends

On May 4, 2023, the Company declared a final dividend of $10,574,125 to ordinary shareholders in respect of the
year ended December 31, 2022.

On November 29, 2022, the Company declared an interim dividend of $5,019,525 to ordinary shareholders in respect
of the year ended December 31, 2022.

On April 28, 2022, the Company declared a final dividend of $3,354,418 to ordinary shareholders in respect of the
year ended December 31, 2021.

In 2022, total dividends declared amounts to $10,574,125 (2022 - $8,373,943). Dividends are accounted for in equity
as an appropriation of retained earnings in the year of its declaration.

22. Other income - net

2023 2022
$ $

Gain on reversal of refundable packaging deposits 2,204,494 2,634,000

Gain from sale of raw materials, by-products and others 163,719 750,460
Gain on disposal of property, plant and equipment – 255,353
Other (expenses)/income (26,682) 36,444

2,341,531 3,676,257

23. Expenses by nature

2023 2022
$ $

Raw materials and consumables used 44,827,973 39,274,763

Personnel expenses (Note 24) 24,134,503 22,866,066
Depreciation (Note 5) 12,840,505 12,845,634
Energy and water 8,844,820 9,430,836
Telecommunication and office automation 9,815,478 8,490,538
Repairs and maintenance 5,336,418 4,743,934
Distribution costs 7,038,206 4,678,078
Advertising and marketing costs 3,827,654 3,397,481
Travel and entertainment 1,837,117 1,858,514
Insurance 1,775,405 1,802,917
Royalties 2,899,012 827,541
Rent and accommodation 618,418 802,248
Amortisation of intangible assets (Note 6) 527,520 689,176
Communication 378,807 389,146
Legal and professional fees 190,558 137,398
Bad debts (write-back)/expenses (979,472) 39,717
Other expenses 1,433,078 798,864

Total cost of goods sold, distribution and marketing costs,

and general and administrative expenses 125,346,000 113,072,851

HEINEKEN SAINT LUCIA LTD. 2023 ANNUAL REPORT | Strengthening our Foundations for a more Sustainable Future
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

24. Personnel expenses

2023 2022
$ $

Salaries and wages 16,944,365 15,507,904

Social security contributions 518,085 510,324
Contributions to defined contribution plan 706,200 648,833
Other benefits 5,965,853 6,199,005

24,134,503 22,866,066
The Company employed an average of 234 (2022 - 241) employees during the year.

25. Finance (costs)/income - net

2023 2022
$ $

Interest expenses
Interest expense on loan payable to related party (1,646,167) (1,031,768)
Interest expense on lease payables (294,273) (307,602)
Interest expense on bank overdrafts (483,172) (205,222)

(2,423,612) (1,544,592)

Other finance income

Other foreign exchange (losses)/gains - net (643,974) 184,807
Interest income on retirement benefit assets - net 278,898 278,075

(365,076) 462,882

(2,788,688) (1,081,710)

63
Heineken Saint Lucia Limited
Notes to Financial Statements
December 31, 2023
(expressed in Eastern Caribbean dollars)

26. Income tax expense

2023 2022
$ $

Current tax expense 3,341,554 5,836,069

Deferred tax expense (Note 16) 108,526 854,907

3,450,080 6,690,976

The tax on the Company’s income before taxation differs from the theoretical amount that would arise using 30%
statutory rate of the Company as follows:
2023 2022
$ $

Profit before tax 21,405,619 22,283,691

Tax calculated at a rate of 30% 6,421,686 6,685,107

Income tax incentives (3,282,125) –
Expenses not deductible for tax 23,534 5,869
Others 286,985 –

Tax charge 3,450,080 6,690,976

27. Earnings per share

Basic and diluted

The calculation of basic and diluted earnings per share is based on the net profit attributable to shareholders of
$17,955,539 (2022 - $15,592,715) divided by the weighted average number of shares in issue ranking for dividend
during the year of 1,274,227 (2022 - 1,274,227).

28. Commitment and contingencies

Customs bonds
The Company is contingently liable in the normal course of business, in respect of customs bonds and collections for
goods not received at the balance sheet date totalling $355,000.

29. Reconciliation of liabilities arising from financing activities

The changes in the Company’s liabilities arising from financing activities can be classified as follows:

2023 2022
$ $
Borrowings - non-current

At January 1 42,456,984 42,395,807

Cash flows:
Additional loan (1,901,830) –
Non-cash:
Fair value (gain)/loss (99,674) 61,177

At December 31 40,455,480 42,456,984

HEINEKEN SAINT LUCIA LTD. 2023 ANNUAL REPORT | Strengthening our Foundations for a more Sustainable Future
NOTICE OF ANNUAL GENERAL MEETING

DATE: Thursday 25th April 2024

PLACE: Heineken Saint Lucia
Notice is hereby given that the forty-eighth Annual General Meeting of Heineken
Saint Lucia Limited (formerly Windward & Leeward Brewery Limited) will be held at
the Brewery Conference Room, Vieux-Fort, St. Lucia, on Thursday 25th April 2024,
commencing at 3:00 p.m. for the following purposes:
1. To receive and adopt the Accounts for the year ended December 31, 2023, and
the reports of the Directors and Auditors therein.
2. To approve a final dividend in respect of the year ended December 31, 2023.
3. To elect Directors.
4. To appoint Auditors for the year 2024.
By Order of the Board,

Holly Bostock
Managing Director
Dated this 28th day of March, 2024.
A member entitled to attend the meeting and vote is entitled to appoint a proxy to
attend and vote instead of him/her in their absence; a proxy need not be a member of
the company.
The instrument appointing a proxy must be deposited with the Company Secretary at
the registered Office no later than 10:00 a.m. on April 24th, 2024.

65
 Annual General Meeting 2024 PROXY FORM

I/We

of

being member/members of the above-named Company, hereby appoint

of

or failing him/her

of

as my/our proxy to vote for me/us on my/our behalf at the Annual General Meeting of the
Company to be held on Thursday 25th April, 2024 and at any adjournment thereof.

As witness my hand this day of , 2024.

Signed:

In the presence of:

If unable to attend, please complete proxy and send to:

The Company Secretary
Heineken Saint Lucia Limited
P.O. Box 237
Vieux Fort, St. Lucia
Telephone No. (758) 459 - 6200
Fax (758) 454 - 6301

N.B. Proxies must be deposited for registration at the Company’s office,

Vieux Fort St. Lucia NO LATER THAN 10:00 a.m. on Wednesday April 24rd, 2024.

66
NOTES 2023 ANNUAL REPORT

67