Despite the inflation, Champion Breweries Plc was able to
record ground-breaking sales. Hence, the fourth most capitalized brewery has
benefitted from the persistent increase in the prices of commodities and
services during the period.
The year in review witnessed double-digit food inflation,
brought about by persistent increase in prices of goods and services, thereby
resulting in inflationary pressures that affected both consumers and producers.
Further look at the result shows that the company’s profit
was driven by significant growth in sales of the company’s products, that is,
Champion Beer and Champ Malta. This delivered a revenue of N10.10 billion in
the full-year period compared to N5.89 billion in the same period of 2020,
representing 71.38% growth y-o-y.
The company also earns income from third-party contracts,
which entails brewing and packaging agreements. This raked in N421 million in
2021, compared to N1.16 billion in 2020, suggesting that the company was not
awarded as many contracts in 2021 compared to the prior year.
In addition, the company also made money from other income
lines, including sale of scraps, by-products and packaging materials which
generated a combined N109 million during the period. Also, the company earned
interest income on short-term deposits during the period.
Champion Breweries Plc full-year revenue performance was
subdued by an 80% rise in the cost of raw materials, which also affected profit
as a trickled down effect.
The company’s reported revenue was impressive despite the
reduction in advertisement and marketing expenses during the period.
Champion Breweries’ grew its total assets to N13.49 billion,
net assets rose by 15% to N9.22 billion.
Champion Breweries Plc has an Earnings per share of
N0.13kobo from N0.02 kobo in 2020.
The company last traded at N2.23 per share and has declined
by 5.11% from year-to-date.
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