By William Jimoh
Consolidated breweries Plc has attributed the growth in its revenue for the year 2012 financial year to investments in some of its brands and other expansion initiatives undertaken during the year
The company had in 2012 posted N33.5 billion revenue as against N27.9 billion reported in 2011, indicating 20 percent growth.
Disclosing this at the company’s Annual General Meeting, AGM in Lagos, the chairman, Professor Oyin Odutola-Olurin, noted that the expansion progrmames had helped the company to remain competitive in the breweries sector.
She said, “2012 has been another strong year of progress for Consolidated Breweries. We continued to invest in equipment in our breweries as well as contract production in Sango Otta in order to increase production. The increase in volume and production of our “33” Export Lager Beer brand and malt drinks in cans has made us remain tall in the market amidst our competitors. The results have been positive in this regard, though the contract brewing led to an increase in variable expenses.
“We also acquired a 57 percent equity stake in Champion Breweries Plc. The merger scheme which took effect from 31 December 2012 is a part of our broader restructuring program to increase value generation through the streamlining of management, staff, operations and processes across our business units and subsidiaries.”
She further stated that the continued implementation of the company’s expansion initiatives also enhanced its efforts towards increasing its stake in DIL/Maltex (Nigeria) Plc to 98 percent and Benue Brewery Limited to 100 percent in the year under review.
She however explained that the drop in 2012 profit after tax where the company recorded N2.7 billion, a 16 percent decline over N3.3 billion recorded in the previous year was largely due to tax duties charged within the year. The group’s PAT decline by 79 percent from N2.2 billion in 2011 to N444.8 million in 2012.
Odutola-Olurin said this was also mainly due to losses from merged and acquired businesses. She pointed out that despite the company’s focus in breaking into new ground; the unforeseen challenges in the country hampered its smooth run.
“Furthermore, the government’s effort in achieving regularly power supply which has not fully materialized, increased the operating cost significantly, coupled with cases of kidnap, militant insurgent in some part of the country and deplorable state of some roads,” she emphasised.