Unaudited Condensed Interim Financial Statements For

Champion Breweries PlcRC: 13388Unaudited Condensed Interim FinancialStatementsFor the Six Months Ended 30th June, 2017

Champion Breweries PlcCondensed Interim Financial Statements for the six months ended – 30th June 2017ContentsPageCondensed interim income statement for the three months period ended 30th June2Condensed interim statement of other comprehensive income for the threeMonth period ended 30th June3Condensed interim income statement for the six month period ended 30th June4Condensed interim statement of other comprehensive income for the sixMonth period ended 30th June5Condensed interim statement of financial position6Condensed interim statement of changes in equity7Condensed interim statement of cash flows8Notes to the condensed interim financial statements91

Champion Breweries PlcCondensed Interim Financial Statements for the six months ended – 30th June 2017CONDENSED INTERIM INCOME STATEMENTFor the three month period ended 30th June20172016N'000N'000Revenue1,184,768957,906Cost of Sales(896,836)(732,905)Gross Profit287,932225,001Other )Results from operating activities54,92516,068Finance income11,42213,984Profit before Selling and Distribution ExpensesAdministrative ExpensesIncome tax expensesProfit after taxBasic and diluted earnings/(loss) per share (kobo)2

Champion Breweries PlcCondensed Interim Financial Statements for the six months ended – 30th June 2017CONDENSEDINTERIMCOMPREHENSIVE INCOMESTATEMENTOFOTHERFor the three month period ended 30th JuneProfit/(Loss) for the period20172016N'000N'00046,54621,761Other comprehensive income:Defined benefit plan actuarial gainTax on other comprehensive income--Other comprehensive income, net of tax--Total comprehensive income for the period46,54621,7613

Champion Breweries PlcCondensed Interim Financial Statements for the six months ended – 30th June 2017CONDENSED INTERIM INCOMESTATEMENTFor the six month period ended 30th JuneRevenueCost of SalesGross ProfitOther IncomeSelling and Distribution ExpensesAdministrative ExpensesResults from operating activitiesFinance incomeProfit before taxIncome tax expensesProfit after taxBasic and diluted earnings per share 22,729111,634(36,600)(32,765)86,12978,8691.101.014

Champion Breweries PlcCondensed Interim Financial Statements for the six months ended – 30th June 2017CONDENSEDINTERIMCOMPREHENSIVE INCOMESTATEMENTOFOTHERFor the six month period ended 30th JuneProfit/(Loss) for the ,869Other comprehensive income:Defined benefit plan actuarial gainTax on other comprehensive incomeOther comprehensive income, net of taxTotal comprehensive income for the period5

Champion Breweries PlcCondensed Interim Financial Statements for the six months ended – 30th June 2017CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITIONFor the six month period ended 30th June, de and other Cash and cash equivalents546,9921,119,199Current assets1,955,4592,208,298Total assets9,822,9659,961,240Share capital3,914,7483,914,748Share premium9,093,7799,093,779Other 756,9897,670,860Employee benefits95,84182,207Non-current liabilities95,84182,207ASSETSProperty, plant and equipmentDeferred tax assetsNon-current assetsEQUITYAccumulated lossesTotal EquityLIABILITIESCurrent tax liabilitiesTrade and other 0,580910,580Current liabilitiesTotal al equity and liabilities9,822,9659,961,240Approved by the Board of Directors on 26th July, 2017 and signed on its behalf by:Dr Elijah Akpan (Chairman) FRC/2017/IODN/00000016127Mr. Patrick Ejidoh (Managing Director) FRC/2017/IODN/00000016109Additionally certified by Mr. Adesina Liasu (Finance Manager) FRC/2015/ICAN/00000013237The notes on pages 9 to 11 are an integral part of these financial statements.6

Champion Breweries PlcCondensed Interim Financial Statements for the six months ended – 30th June 2017Condensed interim statement ofchanges in equityFor the six months period ended 30th June, 48Balance at 1 January 2017Profit/(Loss) for the 2986,129Other comprehensive income for the periodTotal comprehensive income for theperiodTransaction with owners,recorded directly in equityTotal contributions and distributions--Balance as at 30th June, serves86,1297,756,989Condensed interim statement ofchanges in equityFor the six months period ended 30th June, 2016NotesN'000Balance at 1st January 2016Profit/(Loss) for the 869N'0003,701,612N'0007,121,63778,869-Other comprehensive income for the periodTotal comprehensive income for theperiodTotal---78,869-78,869Transaction with owners,recorded directly in equityTotal contributions and distributionsBalance as at 30th June, 6The notes on pages 9 to 11 are an integral part of these financial statements.7

Champion Breweries PlcCondensed Interim Financial Statements for the six months ended – 30th June 2017CONDENSED INTERIM STATEMENT OF CASH FLOWSFor the six month period ended 30th )338,693(16,806)(42,368)Net cash from operating activities(157,202)279,519Cash flows from investing activitiesFinance incomeAcquisition of property, plant and equipment31,704(446,709)28,193(213,437)Cash flows from operating activitiesProfit/(Loss) for the periodAdjustments for:DepreciationFinance incomeGain or loss on disposal of property, plant and equipmentIncome tax expenseChanges in:InventoriesTrade and other receivablesPrepaymentsTrade and other payablesEmployee BenefitsDeposit for SharesCash generated from operating activitiesIncome tax paidVAT paid*Proceeds from sale of property, plant and equipmentNet cash used in investing activitiesCash flows from financing activitiesNet cash used in financing activitiesNet (decrease)/increase in cash and cash equivalentsCash and cash equivalents at 1st JanuaryCash and cash equivalents at 30th ,169,753546,9921,264,378The notes on pages 9 to 11 are an integral part of these financial statements* Value Added Tax (VAT) paid shown separately above has been adjusted for in deriving the change in trade and other payables.8

Champion Breweries PlcCondensed Interim Financial Statements for the six months ended – 30th June 2017Notes to the condensed interim financial statements1. REPORTING ENTITYChampion Breweries Plc (the ‘Company), which is a company domiciled in Nigeria, was incorporated on31st July1974 and converted to a public limited company in 1983. The address of the Company’s registered office isIndustrial layout, Aka Uffot, Uyo, Akwa Ibom State, Nigeria, from where brewing activities are carried out. Themajor shareholders include The Raysun Nigeria Limited, Asset Management Nominee and Akwa Ibom StateGovernment whose shareholdings are 60.71%, 12.29% and 10% respectively.The principal activity of the company is to carry on business of brewing and marketing of alcoholic and nonalcoholic beverages in Nigeria as well as provide contract brewing and packaging services.The financial statements of Champion Breweries Plc as at and for the year ended 31st December 2016 are availablefrom the Company’s registered websitewww.championbreweries.com2. BASIS OF PREPARATIONa. Statement of complianceThese condensed interim financial statements have been prepared in accordance with International FinancialReporting Standard (IFRS) IAS 34 ‘Interim Financial Reporting’. They do not include all of the informationrequired for full annual financial statements, and should be read in conjunction with the financial statements ofChampion Breweries Plc as at and for the year ended 31st December 2016.These condensed interim financial statements were approved by a written resolution of the Board of Directors ofthe Company on 26th July, 2017.b. Functional and presentation currencyThese condensed interim financial statement are presented in Naira, which is the Company’s functional currency.All financial information presented in Naira has been rounded to the nearest thousand unless stated.c. Use of estimates and judgementsThe preparation of financial statements in conformity with IFRS requires management to make judgements, estimateand assumptions that affects the application of accounting policies and the reported amounts of assets and liabilities,income and expenses. Actual results may differ from these estimates.In preparing these condensed interim financial statements, the significant judgements made by management inapplying the Company’s accounting policies and the key sources of estimation uncertainty were the same as thosethat applied to the financial statements as at and for the year ended 31st December 2016.3. SIGNIFICANT ACCOUNTING POLICIESa. GeneralThe accounting policies applied in these condensed interim financial statements are the same as those applied in theCompany’s financial statements as at and for the year ended 31st December 2016.b. Income taxIncome tax expenses are recognised based on management’s best estimated of the weighted average expected fullyear income tax rate.9

Champion Breweries PlcCondensed Interim Financial Statements for the six months ended – 30th June 20174. SEASONALITYThe performance of the Company is subject to seasonal fluctuations as a result of weather conditions and festivities.The Company’s full year results and volumes are depended on the performance in the peak-selling season, typicallyresulting in higher revenue and profitability in the last quarter of the year. The impact from this seasonality is alsonoticeable in several working capital related items such as inventory, trade receivables and payables.5. ANALYSIS OF EXPENSES BY NATUREFor the six-month period ended 30th June:Raw materials & consumablesAdvertising & sales expensesDepreciation and amortizationEmployee BenefitsRepairs & maitenanceRoyalty & Technical feeEnergy & waterOthersTotal cost of sales, selling and distribution and administration 566. INTEREST INCOMEa. Finance incomeInterest income for the six month period ended 30th June 2017 amounted to N31.7 million (six month period ended30th June 2016: N28.2 million)7. INCOME TAX EXPENSESThe Company’s effective tax rate in respect of continuing operations for the nine-months period ended 30th June2017 was 30 per cent (for the six-months period ended 30th June 2016: 30 per cent).10

Champion Breweries PlcCondensed Interim Financial Statements for the six months ended – 30th June 20178. PROPERTY PLANT AND EQUIPMENTAcquisitionsDuring the six-month period ended 30th June 2017 the Company acquired, property, plant and equipment with acost of N446.71 million (six-months period ended 30th June 2016: N213.44 million).Capital commitmentsAs at 30th June 2017, the Company’s capital expenditure commitments for property, plant and equipment amountedto N278.37 million (30th June 2016: N114.76 million)9. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTSFinancial risk managementThe aspect of the Company’s financial risk management objectives and policies are consistent with those disclosedin the financial statements as at end for the year ended 31st December 2016.10. CONTINGENCIESNo material updates in comparison with 2016 year-end reporting were identified that need to be reported.11. RELATED PARTY TRANSACTIONSThe Company has related party relationships with its parent company, Heineken N.V. and Heineken group entities.These transactions are conducted on terms comparable to transactions with third parties. The related partytransactions in the first six-months period ended 30th June 2017 do in substance not deviate from the transactions asreflected in the financial statements as at and for the year 31st December 2016.12. SUBSEQUENT EVENTSThere are no significant subsequent events, which could have had a material effect on the state of affairs of theCompany as at 30th June 2017 that have not been adequately provided for or disclosed in these condensed interimfinancial statements.11

required for full annual financial statements, and should be read in conjunction with the financial statements of Champion Breweries Plc as at and for the year ended 31st December 2016. These condensed interim financial statements were approved by a written resolution of the