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Lion Brewery 4Q20 PAT grows 41% YoY

15 Feb 2021

Lion Brewery has recorded Rs. 790.1 million as their profit after tax (PAT) for the quarter ended 31 December 2020, which is a growth of 41% from the PAT it recorded during the same period previous year, according to the company’s interim financial report. The company’s profit before tax (PBT) was Rs. 1.27 billion for this quarter, a growth of 40% compared to the same quarter previous year. PAT for the nine months ended 31 December 2020 stood at Rs. 1.96 billion while that of the previous year was Rs. 2.27 billion, which is a decline of about 14%. Meanwhile, PBT for this nine-month period was recorded as Rs. 3.1 billion compared to Rs. 3.7 billion for the nine months ended 31 December 2019. The company noted that during the third quarter, some parts in the Western Province, a large contributor to volume and one of the most affected areas from the second wave of the Covid-19 pandemic, was subject to closures. The resultant economic conditions from these closures and the countrywide lockdown during April and part of May impacted turnover and thus profitability. “As a consequence, the results of the company for the nine months ended 31 December 2020 records a decline of 14% compared with the corresponding period of the previous year. Throughout this period, in the primary and secondary supply chain, in the areas that were open for business, we ensured full brand availability to our consumers all over the island, whilst maintaining and adhering to the highest health and safety standards. All our partners including consignment agents and retailers were made aware to follow all health guidelines laid out by the authorities,” the company added. However, it stated that within these disruptive and unusual conditions, the results for the nine months can be considered satisfactory. According to the company, export operations continued to grow amidst many challenges faced, with volumes to Africa and the Middle East driving the growth momentum. The disruptions from the Covid-19 pandemic has affected markets, whilst also impacting freight rates and logistics. “Despite these obstacles, export volumes grew by 16%, during the nine months up to December 2020, compared to the same period last year. The Maldives market, which recorded a decline, indicates some recovery due to an improvement in their tourist arrivals. All processes have been put in place across the business to manage the Covid-19 crisis, and the focus for the next three months will be to ensure uninterrupted supply to the market. Whilst the circumstances presented will not support volume growth, profitability could be expected to remain at moderate levels if no further lockdowns are experienced,” the company added in its report.


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