AVON CROWN CAPS PLC: BEHOLD THE LOSS LEAGUE.

It appears financial year 2015 will end with Avon Crown Caps PLC taking a plunge into the loss league. It had landed there by September and may be set to stay there to December.
According to the figures for the period released recently, the back breaker has nothing to do with main line business but more with 68.7% leap in finance charges from N174.2m to N294.7m.
Of course, 16.9% increase in distribution costs to N293.6m chipped in pressure inside.
The truth was that with 11.2% growth in main line inflow from N3483.9m to N3873.3m accompanied by only 8.04% rise in cost of goods sold to N3292.2m and 133.3% increase in income from other sources to N1.05m, the pressure from distribution was a piece of cake.
Not so for jump in finance charges. Hence, Avon Crown Caps ended September with N6.19m loss compared to N11.6m profit before tax by the same time in 2014 year.
IN SUM:
* Something has to be done to reduce the growth in finance charges consequent on the 129.7% rise in current financial liabilities to N9036.1m from N4242.9m within the period.
* Also increase in distribution costs, though soft, could do with some  trimming.

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