Champion Breweries Plc, a prominent Nigerian brewing company, witnessed a significant decline in profit, plummeting by 73.6 percent according to its latest financial statement. The company’s after-tax profit plummeted to N370 million from N1.41 billion in the previous year, while profit before tax also experienced a notable decrease to N445.3 million from N2.25 billion.
Despite a marginal increase in revenue to N12.7 billion from N12.3 billion, Champion Breweries faced challenges in managing its cost structure. The cost of sales surged to N7.63 billion from N6.48 billion, with selling and distribution expenses rising to N3.03 billion from N2.29 billion, and administrative expenses growing to N1.53 billion from N1.43 billion.
Moreover, impairment loss on financial assets escalated to N20.4 million from N5.79 million, while other income declined to N120.3 million from N183.5 million. On a positive note, tax expenses decreased to N74.8 million from N841.2 million.
The financial report also revealed a negative net cash used in investing activities of N6.58 billion and a positive net cash generated from financing activities of N1.01 billion. Notably, the company witnessed an increase in costs related to raw materials and consumables, which rose to N4.02 billion from N3.92 billion, and expenditure on repair and maintenance surged to N937.9 million from N568.2 million.
Source: Business Day