NB Declares N19.08bn Net Profit For H1

Nigerian Breweries Plc has recorded a profit after tax of N19.08 billion for the first half (H1) financial year ended on June 30, 2022.

According to the unaudited report and provisional results filed with the Nigerian Exchange Limited, the company posted profit after tax for the six-month period under review rose by 142.8 per cent, from N7.86 billion to N19.08 billion. Similarly, basic earnings per share in H1, 2022 was N2.37 as against 97 kobo that was recorded in H1 last year.

The results also revealed a 31 per cent growth in revenue compared to the N209.22 billion recorded in the corresponding period in 2021.

In a statement signed by the company secretary/legal director, Uaboi Agbebaku, said the company’s 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 per cent, from N131.34 billion in H1, 2021 to N155.35 billion in 2022 in the same corresponding period. Marketing, distribution, and administrative expenses also rose by 44.6 per cent, from N58.42 billion in H1, 2021 to N84.45 billion in H1, 2022, driven by the increase in commercial activities post-COVID, rising diesel prices and higher wages arising from collective labour agreements

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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.

The company assured 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, adding that “in line with its certification and status as a Great Place to Work company, it would also continue to prioritise the health, safety, and welfare of its employees and partners.”