Nigerian Breweries Plc says it recorded a Profit After Tax of ₦19.08bn in the first half of the 2022 financial year ended June 30, 2022, representing a significant 142.8% growth over the ₦7.86bn reported in the corresponding period of last year. This translated to basic earnings per share of 237 kobo, as against 97 kobo that was recorded in H1 last year.

The profit growth was far better than the 31% improvement in sales revenue which stood at ₦274.03bn from the ₦209.22bn in the corresponding period of last year, according to the unaudited financials for the period filed with the Nigerian Exchange Limited

A statement by the company secretary/Legal Director, Uaboi Agbebaku, said the increase in profit was driven mainly by top line growth resulting from its pricing strategy and better mix.

Further analysis of the results revealed that the Cost of Sales increased by 18.3% from N131.34bn to N155.35bn ; Marketing, Distribution, and Administrative expenses also rose by 44.6%, from N58.42bn in H1, 2021 to N84.45bn in H1, 2022, driven by the increase in commercial activities post-COVID, rising diesel prices and higher wages arising from collective labour agreements

Uaboi also noted that although interest expenses were lower, the net finance cost was higher due to foreign exchange losses arising from a higher cost of meeting foreign obligations to overseas partners.

“Despite these challenges, our business continues to build momentum and deliver consistent profitable growth even in the context of a very challenging operating environment. Our best-in-class portfolio of brands provides a unique platform that positions us well to lead and grow the beer and malt category and drive superior long-term value creation,” he added.

The company, therefore, assured its stakeholders that it would continuously evaluate its financial position and business performance to ensure a strong balance sheet, while remaining dynamic in its response to operational challenges vis-à-vis the economy.