Champion Breweries submitted its unaudited six months financial report ended June 30 2015 to the Nigerian Stock Exchange on July 16, 2015.
According to the report the consumer goods company made a profit before tax of N20.829 million in first half of 2015 as against the loss of N884.712 million it incurred in the first half of 2014. The profit attracted a tax of N6.25 million to bring Profit after tax to N14.579 million in first half of 2015. This 100.19 profit was able to wipe out N98.30 million loss it made in the first half of 2014.
For the first six months of the 2015 financial year, Champion Breweries earned14 per cent revenue boost from N1.4 billion in 2014 first half to N1.596 billion in 2015 for the corresponding period. The company spent 2.33 per cent more on cost of production which brought it to N1.242 billion for the 2015 first half as against N1.214 billion it spent in 2014.
The boost in the profit made is said to be as a result of the 15.45 per cent drop in the amount the company spent on admin and distribution expenses. It spent N361.327 million in 2015 first half on admin and distribution expense in contrast of N427.33 million spent in the prior period.
Also the 13.61 per cent appreciation in other incomes helped to boost the company’s profit. a total of N18.642 million was earned from other income sources in the first six months of 2015 as against N16.409 million in 2014 for the period under review. Further look at the report submitted by the company shows that the company now has 4.54 per cent more assets to its name from N9.592 billion in 2014 to N10.027 billion in 2015 for the period under review.
Also shareholders fund appreciated by 20.1 per cent to close June 2015 with N7.050 billion as against N5.87 billion as at January 2015. The earnings per share is now positive at N0.19 in 2015 first half as against a negative (N98.30) in 2014 first half. The company earned 101.65 per cent less than the N659.445 million finance incomes it earned in 2014 which brought 2015 earnings to N10.109 million.
The 2015 financial year has been very harsh and a lot of companies have been badly affected. A lot of companies are expected to either post reduced profit or outright loss. Experts believe that Champion Breweries has done well as it not just wiped out its huge loss but was also able to make profit.
Champion Breweries currently has a market capitalization of N41.574 billion with outstanding shares of 7.83 billion. Its unit share price stands at N5.31.