Champion Breweries Explains Improved Financial Results
The Chairman of Champion Breweries Plc, Dr. Elijah Akpan has attributed the company’s improved 2016 results to the performance of its brand portfolio among other factors. Champion Breweries Plc’s revenue increased to N3.9billion from N3.5 billion in 2015. Its operating profit grew from N207 million to N618 million, showing a growth of 198 per cent. Profit before tax grew faster, rising by 203 per cent to N637 million as compared to N210 million in 2015.
Speaking at the company’s 41st annual general meeting (AGM) in Lagos, Akpan said the trading results of the year under review shows substantial improvement compared to previous year’s.
He attributed the relative success to the performance of the company’s portfolio, saying “It is imperative to state that the good result is not only attributed to the production and sale of our brand portfolio but was also driven by a ‘relaxed’ tax exposure.”
Although the company is not paying dividend to shareholders, Akpan assured that the years ahead look bright as the company remained profitable, stronger and on the path to long term growth.
“Our concerns on the inability to pay out dividend till date has put more pressure on the board and Management to implement strategies to boost our revenue and profits in order to reduce the Company’s accumulated losses. We remain relentless in achieving the growth, development and success of our Company in the coming financial year,” he assured.
While lamenting economic recession which beclouded 2016 with its negative multiplier effects on business, he, however, expressed hope that 2017 would experience an increased crude oil production and sale due to security improvement compared to the year under review.
“This would also lead to a more stable foreign exchange position thereby attracting capital importation for investments and development,” he said.
The chairman had last year told shareholders that 2016 would be better considering efforts being made to reduce its debts and increase production and sales volume.
“The company’s successful conclusion of debt re-financing, increase in production and sales volume of Champion Lager Beer as well as re-introduction of Champ Malta has resulted in positive turnaround of the business performances during the year,” he said.
Akpan had said there were large and varied opportunities in different sectors of the economy, stating that “We shall explore the available possibilities the Nigerian business environment is offering to increase our market share within our business region.”