The share price of Nigerian Breweries Plc, gained 22.59% week-on-week at the end of Friday’s trading, as investors reacted to its unaudited results for the first quarter ended March 31, 2022, in which the directors reported a significant growth in sales revenue and profit, despite the 85% increase in tax expense for the period. This growth is expected to result in a better dividend payout at year-end, should the company sustain the growth trajectory.
At the close of last week’s trading on the Nigerian Exchange Limited, rose from N57.10 to N70 per share, making it the fifth biggest gainer for the week, behind competitors- Champion Breweries, International Breweries, Cadbury Nigeria and Fidson Healthcare.
According to the result, revenue from the sale of alcoholic and non-alcoholic beverages by Nigerian Breweries rose 30.4% from N105.676bn to N137.747bn, while cost of sales climbed from N66.005bn to N75.319bn, with raw materials and consumables accounting for N54.608bn from N46.532bn; following which gross profit amounted to N62.452bn, from N49.671bn.
Other income increased from N368m to N859m; marketing, and distribution expenses rose to N32.136bn from N19.803bn; and administrative expenses increased from N5.744bn to N7.247bn; following which results from operating activities stood at N23.724bn from N14.49bn.
Finance income grew from N25.436m to N73.514m; and net loss on foreign exchange transactions rose from N612m to N1.877bn; just as finance costs dropped to N1.158bn from N2.389bn; leaving net finance costs at N2.961bn, from N2.976bn.
These brought profit before tax for the period to N20.763bn from N11.514bn; while income tax ballooned from N3.855bn to N7.149bn; resulting in net profit of N13.614bn, up from N7.66bn. This translated to earnings per share of N1.69, compared to the previous N0.96 each.
Commenting on the result, the company secretary/Legal Director, Uaboi Agbebaku, said Nigerian Breweries remains committed to continuously delivering value for its shareholders by remaining sustainable and profitable amidst the challenging operating environment and challenges in the Nigerian economy.
“This positive performance has proven the ability of the board and management to navigate Nigeria’s business landscape in the best interest of the shareholders despite the inherent challenges. This result reflects the renewed determination of the company to drive efficiency and guarantee sustainable growth for the business,” Agbebaku said.