15 February 2021 08:16 am
Lion Brewery Ceylon PLC (LION) recorded performance for the quarter ended December 31, 2020 (3Q21) although the lockdowns due to second wave of COVID-19 in early October disrupted supply chains and local consumer appetite.
The company generated revenues of Rs.13.6 for the quarter under review, up 16 percent year-on-year (YoY).
“During the third quarter, some parts of the Western Province, a large contributor to volume and one of the most affected areas from the second wave of COVID-19 pandemic, was subject to closures,” the company said in an earnings release.
LION share ended Rs.10.50 or 1.80 percent lower at Rs.572.00 on Friday.
“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 & adhering to the highest health and safety standards,” the company added.
As local sales slowed due to the isolations and other mobility restrictions, Lion Brewery continued to penetrate export markets seeking more sales.
The re-opening of the Maldivian market for tourists back in July helped the company to increase volumes to the island nation.
“Export operations continued to grow amidst many challenges faced, with volumes to Africa & the Middle East driving the growth momentum.
Disruptions from the COVID-19 pandemic have affected markets, whilst also impacting freight rates and logistics. Despite these obstacles, export volumes grew by 16 percent, 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,” the earnings release said.
LION currently sends its products to 25 countries.
The company reported earnings of Rs.782.3 million or Rs.9.78 a share compared to Rs.6.90 a share in the same period in 2019.
As at December 31, 2020, Ceylon Beverage Holdings PLC had 52.25 percent stake in Lion Brewery while Carlsberg Brewery Malaysia had 25 percent stake.