Nigeria: Nigerian Breweries reports higher Q1 profit thanks to advance in sales

Heineken-backed Nigerian Breweries Plc said on April 24 its profit from January to March swelled by 39.1 per cent, backed by a significant advance in sales, the Premium Times reported on April 24.

Net revenue for the period jumped to N105.6 billion, 27 per cent stronger than the figure posted in the first quarter of last year, Nigeria’s biggest beer-maker stated in its unaudited earnings report.

Profit before tax rose to N11.5 billion from N8.3 billion a year earlier.

Post-tax profit climbed to N7.7 billion, 39.1 per cent higher than N5.5 billion recorded in the same period of 2020.

Total assets contracted by 0.10 per cent, largely resulting from a tumble in cash and cash equivalents from N30.4 billion to N18.4 billion.

“The impact of Coronavirus (Covid-19) pandemic on the economy and by implication, the Company continued during the period under review,” the brewer said in a statement signed by Uaboi Agbebaku, the company secretary.

“Our priority remained protecting the health, safety and welfare of employees, customers and partners. We regularly monitored and evaluated the Company’s financial position and performance in the light of the pandemic; our Balance Sheet remained strong.”

Earnings per share (basic and diluted) stood at N0.96, compared to the N0.69 of the same period of 2020.

Last year, the brewer commissioned an automated bottling in Ijebu Ode, Ogun State valued at N5.1 billion. It is anticipated to produce 24,000 bottles per hour.

A subsidiary of Amsterdam-based Heineken N.V, which holds a 56 per cent stake in it, Nigerian Breweries was incorporated in Nigeria in 1946, trading under the name Nigerian Brewery Limited.

Market intelligence firm Simply Wall Street expects the earnings of Nigerian Breweries to grow 23.44 per cent this year.

Shares in Nigerian Breweries closed in Lagos on April 24 at N50.1 per unit, trading up 2.2 per cent.

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