National Breweries PLC has recorded an increase in revenue from K142, 937 recorded last year to K151, 376 this year as at end of June 30th, 2018.
The Zambian based brewer, in its SENS announcement on Lusaka Stock Exchange (LuSE) obtained by Money FM News, has also recorded a reduction in gross profit of K43, 206 from last year’s K45, 637 in the period under review.
The cost of sales has increased to K108, 170 from the previous K97, 300 while the loss before tax stands at K24, 136 this year compared to the K36, 286 recorded last year as at the end of June 30th.
And Company Secretary Vongai Chiwaridzo says despite the steady economic improvements during the period, conditions remained difficult for the business due to competition from forms of beer such as draught, affordable clear beer, cheap spirits and entry of new players in the packaged segment.
Ms Chiwaridzo says the competitive environment meant that traditional beer prices remained depressed.
“Total volumes were 14% up on prior year. Revenue was up 6% compared to the same period last year driven largely by the volume mix, i.e. increased sales of higher margin Chibuku Super from 39% in the prior year to 54% in the current year. A price rollback was taken on Shake Shake in the early part of the year to improve product competitiveness and grow volume,” she reviewed.
She says the company reopened the Ndola and Kabwe depots during the period.
She adds that the business made an operating loss of K24.1m for the period which was an improvement of 32% on prior year.
Ms Chiwaridzo states that the movement in profitability in the period is attributed to the increased contribution of Chibuku Super and cost-cutting initiatives.
The National Breweries Secretary says the prior year included payouts for the voluntary separation offer (VSO).
Ms Chiwaridzo says the increase in finance costs during the current year is attributed to the external borrowings outside the group.
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