QUARTER RESULTS (6): CHAMPION BREWERIES PLC, COURTVILLE BUSINESS SOLUTIONS PLC.

CHAMPION BREWERIES PLC: Champion start.

Champion Breweries PLC seems to have laid good foundation for winning year in the first quarter to March 2016.
Or so the unaudited results for the period indicate Champion Breweries won the first quarter battle with all except selling and distribution costs giving s helping hand.
The tune setting helping hand was only 5.48% increase in cost of sale to N606.2m while generating core revenue growth of 15.2% to N871.9m.
Total income growth even ended higher than this at 18% to N897.9m as Other income rose to N11.8m from N3.87m and from zero previously, finance income clocked N14.2m.
Administration cost ended the quarter 14% up but compared to income recorded, that caused no trouble.
The odd one out of the lot was selling and distribution costs which at 35.8% to N82.3m, recorded growth that was more than twice that in core revenue.
However, this was easily absorbed and so, closing profit before tax came to N81.6m from N13.4m in 2015 corresponding period.
In more graphic terms, as profit margin recovered to 9.09% from 1.76%, it was left for stakeholders to watch out for what the rest of the year will do to this foundation.
Liquidity remains tight though but improving.

CHAMPION BREWERIES PLC: (Nm)
                       First quarter
                          2016.            2015
Total income  897.9.            760.9
Core revenue  871.9.            757.0
Cost of sale.   606.2.            574.7
Other Income   11.8.              3.87
Selling etc        82.3.             60.6
Administration 127.9.         112.2
Finance income 14.2.            -
Profit before tax 81.6.          13.4
Profit margin %  9.09.            1.76
Working capital (618.8).    (748.4)
Cash                 1223.3.      1169.8

COURTVILLE BUSINESS SOLUTIONS PLC: TOUGH START

For Courtville  Business Solutions PLC, financial year 2016 did not take off with a good first quarter but then, something more positive can still come out in the months ahead.
From the figures, total and core revenue were down and the next major blow was that cost of providing the services they offer jumped by 33% to N198.1m in spite of the income drop.
Operations cost of the overhead kind decreased marginally to N111.7m but 1.85% drop is not even in the league of the 3.18% down in core revenue.
With interest cost rising by 9.54% to N35.6m, it was inevitable that profit before tax tumble by 92.2% to N8.18m from N105.5m previously.
And Courteville's thus ended the quarter weaker than it started it.

COURTVILLE BUSINESS SOLUTIONS PLC (Nm)
                First quarter
                        2016.            2015
Total income 353.4.           400.8
Core revenue 346.9.           358.3
Cost of sale.  198.1.           148.9
Other income   6.53             42.2
Operating cost 111.7.        113.8
Interest paid       35.6.          32.5
Profit before tax  8.18.       105.5
Profit margin %   2.31.         26.3
Working capital  9.20.          73.0

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