Champion Breweries Plc has reported a loss after tax of N18.29m for the half year ended June 30, 2020 as against a profit of N99.11m posted in 2019.
According to the unaudited financial accounts obtained from the Nigerian Stock Exchange, the brewer also recorded a loss before tax of N26.09m, compared to a pretax profit of N141.41m posted in 2019.
Its revenue dropped 12.24 per cent to N1.427bn during the period under review from N1.63bn in 2019. Cost of sales rose to N942.55m from N640.19m in 2019.
Champion Breweries had said it leveraged on reduced costs of production in its efforts to return to profitability.
The company said results of such efforts had positively impacted on production and sales of its brand portfolio in the reporting year.
Addressing shareholders during the virtual AGM, the company’s Chairman, Dr Elijah Akpan, said, “Revenue grew to N6.9bn from N4.8bn; operating profit changed its narrative from a negative position of N223m in 2018 to the positive position of N241m.
“Our investment in power generation by way of utilisation of gas has begun to pay off as significant savings have resulted as well as improved efficiency in our mode of operation in recent times.
“The board will commence work on the establishment of dividend policy with an expectation of implementation within the soonest practicable time.”
He lamented the harsh operating environment occasioned by the COVID-19 pandemic.
He said, ”There have been widespread reports of supply shortages of pharmaceuticals and manufactured goods due to factory disruption in China, with many areas seeing panic buying and consequent shortages of food and other essential grocery items.
“The restrictions on public gathering would remain a threat to our consumer market during the year.”