Champion Breweries Plc has released its FY 2021 results which revealed 520% growth in post-tax profit, from N159 million in the corresponding period of 2020, to N984 million in the current period.
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.
Key highlights of the result
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. Click here to subscribe to Nairametrics Stock Select Newsletter.
Download Nairametrics App for breaking news and market intelligence.