Avon Crowncaps losses widen in Q1 despite revenue growth

Avon Crowncaps & Containers Nigeria Plc, manufacturers of screw caps, metal containers and steel drums for a diverse industry which includes beverage companies (makers of soft drinks, juice, dairy, brewers, spirits producers), pharmaceutical and oil industries among others reported a net loss of N202 million in the first quarter of 2016 (Apr – Jun) despite posting a 20% rise in revenue to N4bn, up from N3.4bn from the same period in the previous year.

A combined effect of higher cost of sales, currency headwinds, increased distribution and administrative expenses weighed on the company’s profits. Similarly, Avon Crowncaps posted a net loss of N169m in full year 2015 despite a 9.42% rise in sales revenue to N14.4bn, of which N11.9bn went to cover cost of sales.

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