Daily Archives: March 30, 2015

Champion Breweries records N754 million loss in (Q4) 2014 on high production and borrowing cost

Champion Breweries Plc, the Akwa-Ibom based brewer reported a N754 million loss in its fourth quarter 2014 results.

High production costs and skyrocketing interest expense were to blame for the loss as decelerating beer volume growth this year is expected to slow the beer market.

The devaluation of the naira has impacted negatively on breweries as it exposed them to foreign currency risks as some ingredients used in beer manufacturing like barley are imported.

“We imagine that most of these firms will struggle to survive daunting pressure on costs, occasioned by the naira volatility and the pass-through impact of naira depreciation, “said Saheed Bashir, analyst at Meristem Securities Limited.