Nigerian Breweries Records N10.5bn Profit in First Quarter

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Goddy Egene

Nigerian Breweries Plc has recorded a profit after tax (PAT) of N10.45 billion for the first quarter ended December 31, 2016. The unaudited results made available by the company to the Nigerian Stock Exchange (NSE) showed that the N10.45 billion PAT was four per cent higher than the N10.10 billion PAT recorded in the corresponding period of 2015.

The company’s revenue for the period grew by 11 per cent from N69.92 billion in 2015 to N77.55 billion in the current period. A further analysis showed that the results from operating activities improved by 10 per cent from N16.37 billion in the first three months of 2015 to N17.99 in the corresponding months in 2016.

Nigerian Breweries explained in a statement that the 11 per cent growth in revenue was a reflection of the company’s strong and effective route to market, increased sales during the festive Easter period as well as higher number of sales days in the period as against the lower number of days recorded in the corresponding period of 2015 due to the general elections. According to the statement, despite the current challenging operating environment leading to consumer down-trading, rising inflation, increased cost of financing due to higher foreign exchange cost and increased input cost amongst others, the company was still able to return the four per cent increase in PAT. The increase in profit was also helped by the one-off merger costs incurred in the first quarter of 2015.

The statement signed by the Company Secretary/Legal Adviser, Mr. Uaboi Agbebaku, further said although the board expects the operating environment in 2016 to continue to be very challenging, it remains confident that the company is in a good position to take advantage of any upswing in the market especially with its twin agenda of cost leadership and market leadership supported by innovation.

Shareholders of the company are to receive a final dividend of N38 billion for the financial year ended December 31, 2015, which will translates to N3.60 per share. Having paid an interim dividend of N9.5 billion or N1.20 kobo per share earlier, the total dividend per share for year will be N4.80 per share.
Nigerian Breweries Plc had ended 2015 with a revenue of N293 billion in 2015, up by 10.3 per cent compared with N266 billion in 2014 and profit before tax of N54 billion.