Champion Breweries Plc is leveraging on reduced costs of production in her efforts to return to profitability.
The company, which held her 44th Annual General Meeting last Friday using virtual platform, said results of such efforts have positively impacted on production and sales of her brand portfolio in the reporting year 2019.
Addressing shareholders who participated effectively in the virtual AGM, Chairman, Elijah Akpan said revenue grew from N4.8 billion to N6.9 billion, operating profit changed its narrative from a negative position of N223 million in 2018 to the positive position of N241 million and the comprehensive profit was N96 million as against a loss of N165 million in the previous year.
“Our investment in power generation by way of utilization 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”, he said, while assuring the Board’s resolute in working with Management on strategies to grow the business and lean on the shareholders’ continuous support towards the capitalization of the company.
Elijah told elated shareholders that the Company is now on the path of profitability as demonstrated in the results.
“The Board will commence work on the establishment of Dividend Policy with an expectation of implementation within the soonest practicable time”, he assured.
He lamented the harsh operating environment occasioned by the COVID-19 pandemic.“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”, he said.
While being optimistic of a more secure and better economically stable country, he said “we are convinced that the incoming year would be more productive and beneficial to us all. We are approaching the tail-end of the negative results suffered by the company over the years. This would certainly lead to larger returns shortly in a more stable terrain”.
