COLOMBIA: Packaging law hits Bavaria Q1 figures

By just-drinks.com editorial team | 3 May 2006

Bavaria, the Latin American arm of brewing giant SABMiller, saw losses widen during the first quarter of the year as a new Colombian law hit the company's bottom line.

The company yesterday (2 May) posted a consolidated net loss of COP31.05bn (US$13.1m), down from a net profit of COP6.4bn last year. Revenues, however, rose 10% to COP646.7bn.

Bavaria said that a new government regulation had forced it to value bottles and packages as assets rather than inventory. The measure hit the company's results as bottles and packages depreciate in value quickly.

SABMiller bought a majority stake in Bavaria last July and since then has moved to buy 98% of the company's shares. Bavaria dominates the beer markets in Colombia, Peru, Ecuador and Panama.

Sectors: Beer & cider

Companies: Bavaria, SABMiller