Champion Breweries net profit rises 102.35% in half year (H1) 2015 results
Champion Breweries Plc, the Akwa Ibom based brewer that is majorly owned by Raysun Nigeria Limited, a holding company controlled by Heineken N.V, the parent company of Nigerian Breweries Plc reported a profit before tax of N20.829 million and profit after tax (PAT) of N14.579 million in its half year results for period ended June 30, 2015. In the same period in 2014, the company recorded a loss of N884.712 million.
Champion’s revenue for (H1 2015) rose 14 percent to N1.596 billion, from N1.4 billion from the same period in 2014.
The company appears to have gotten a better handle on its costs as administrative and distribution costs was 15.45 percent lower at N361.327 million, from N427.33 million it incurred for the same period in the preceding year.
Champion earned a 13.61 percent appreciation in other income to N18.642 million, from N16.409 from the same period last year, which helped bump up the company’s profit for the quarter.
In addition, shareholder’s fund appreciated by 20.1 percent to N7.050 billion, from N5.87 billion in January 2015. The company’s earnings per share is now in the positive at N0.19 as against a negative (N98.30) in half year 2014.
Champion Breweries has done remarkably well considering that other beer firms have seen their profits decline this year due to macro-economic environment in the country, which has severely hampered companies in the fast moving consumer goods (FMCG). Beer firms and other consumer product companies in the country are beset by falling oil price, a budget deficit with prospect of government spending cuts and low to no growth in GDP, higher inflation rate at 9.2% as of June 2015, a weak consumer spending, an insurgency in the North of the country, devaluation of the naira, which has raised the cost of raw materials for companies that partly depend on imports to manufacture goods, in this case, barley.
Champion Breweries Plc makes the Champion lager beer.