Commonwealth Brewery Ltd. (CBL) stated in its second quarter financials that it will continue to carry out cost productivity programs in order to protect its bottom line, as the company revealed that it continues to battle with inflation.

The company said in its statement, though, that net revenue during the period ending June 30, 2023 was ahead 11 percent when compared to the same period last year.

"Key drivers were the continued economic recovery, the market alignment of excise tax, and the ongoing growth of tourism," the company said.

"Revenue growth was delivered through a combination of margin per hectolitre - to offset ongoing inflation - and volume growth in key categories such as beer, malts, and spirits.

"Operating expenses increased to $57 million for the period (+11 percent), primarily driven by increased production and logistics, selling and marketing, as well as payroll expenses.

"Certain increases reflect the ongoing pressure from inflation."

CBL said there was a "slight decline" in net profit of $300,000 year over year.

"In the second quarter, CBL recorded a net profit of $4.6 million, which is a slight decline versus the comparative period in 2022 ($4.9 million)," the statement said.

"This was mainly driven by increased selling and marketing expenses, continued cost pressure on raw and packing materials, personnel expenses and increased finance expenses, mainly related to foreign exchange.

"As a result of this second quarter performance, comprehensive income for the first half of 2023, at $6.5 million, was up marginally versus the $6.2 million earned in the comparative period of 2022."

The company said it continues to face market volatility and has a plan to mitigate the impacts of those pressures, including inflation, while looking ahead to growth.

"Management will continue to execute its Evergreen strategy to drive sustainable, balanced growth by identifying specific cost mitigations as we navigate the ongoing market volatility whilst building for the future," the company said.

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