Avon Crowncaps & Containers Nigeria Plc, makers of screw caps and metal containers for the beverage industry reported a net loss of N86m for the third quarter ending 30th September. In the same period in 2015, it recorded a net loss of N16m.

The company’s revenue grew 16% to N4.5bn, from N3.9bn in the previous year. However, a 21% jump in cost of sales to nearly N4bn reduced Gross Profit margins by 12%, leaving little gain to cover operating expenses.

Avon Crowncap’s profitability as an ongoing business concern is severely challenged by a higher cost of sales which leaves nothing for profit.