By Muazu Abari Yola
Th e Chairman Board of Directors of Adamawa Beverages, producer of Faro Water and Juice, Akin Kekere Ekun has identifi ed CBN policies, instability in the forex market and high cost of materials as some of the factors that aff ect their production capacity in 2016. He disclosed this at the weekend in Yola while addressing shareholders of the company at the 5th annual general meeting of the company in Yola.
“It is pertinent to intimate you of some of the challenges the company faced in the period under reviewed which among others aff ect our production capacities and the projected turnover negatively” “Th e instability in the forex market which resulted to high increase in the price of our basic raw materials. prices of some of these items wend up by as much as 200% to 300%over last year prices. Our production capacity during the year was thus limited to just about 70% of projection. ”
Others are the cost of fund send up due to CBN policies and our facilities send up from 14% to 17% in the year under review transportation diffi culties and general hike in the cost of diesel which wend up as high as 290/litre within the period as we rely 90% on generator energy to power the plants among others.”
He further explained that the company achieved a turnover of #4.5Bn against the #3.8Bn recorded in the previous year 2015 which represent a 16% growth in turn over even though the profi t after tax was in the negative which he attributed to the huge depreciation and fi nancial charges associated with the expansion project of the plant B,40,000 bottles per hour plant. According to him despite these challenges and economic recession the company still remain committed to its corporate social responsibility noting that they have impacted and will continue to impact tremendously on its host community
