Sri Lanka-based Lion Brewery (Ceylon) PLC has witnessed a significant growth in exports in first-half of the 2020/21 financial year, despite the fact that the business in local market was adversely affected due to the pandemic.

"Whilst business in the local market was adversely affected due to the pandemic, it was satisfying to record a significant growth in exports. Currently, Lion beer is exported to 25 countries and volumes increased by 19% during the first-half whilst profits rose by 32% in this segment of the business," Lion Brewery said, releasing its interim financials for the second quarter ended 30 September 2020.

"This performance was notwithstanding the slowdown in tourism in the Maldives – a sizable market for Lion beer exports – during this period. All export growth was organic as new markets were not penetrated during the first-half," the company said.

The company ended the first-half of the reporting period with a 32% decline in profitability compared to the same period of the previous year.

"This was the result of the quarantine curfew during all of April and most of May. Since April is a seasonal month, a closure during this period impacts the company’s performance very significantly and is reflected in the 11% decline in revenue during the first half," the company said.

The company further stated that stringent control of overheads during this period helped reduce the impact of the drop in revenue and return what can be considered a reasonable level of profitability under extremely challenging external conditions.

After almost four-and-a-half months  of relative calm, COVID-19 has once again impacted the country particularly the Colombo and Gampaha districts. However, the company is said it is hopeful that the Government would succeed in containing the spread of the virus soon.

"This will no doubt have an adverse impact on results although its extent will be determined by the length of the quarantine curfew in place currently. The government was very successful in dealing with the 1st phase of COVID-19 and we are confident that the current outbreak will be dealt with in a similar fashion, both efficiently & expeditiously."

"If so, the company’s results – whilst not completely unscathed – will continue to remain at what can be considered reasonable levels under very challenging circumstances,"  Lion Brewery said.