Nigerian Breweries (NB) Plc has declared the sum of N209.22 billion as revenue for the first half (H1) of its financial year, ended on June 30, 2021.
The company released its unaudited and provisional results on the Nigerian Exchange Limited.
The revenue grew by 37.8 per cent to N209.22 billion compared to the N151.80 billion recorded in the corresponding period of 2020.
The results also revealed that profit after tax for the period under review grew by 38.80 per cent from N5.66 billion recorded from Q2 last year to N7.86 billion in 2021. Similarly, basic earnings per share in H1, 2021 rose to 97 kobo as against 71 kobo that was recorded in H1 last year.
The unaudited and provisional results showed that the cost of sales increased significantly, rising from N92.67 billion in H1, 2020 to N131.34 billion in 2021 in the same corresponding period while marketing, distribution and administration expenses increased by 31.8 per cent from N44.32 billion in H1, 2020 to 58.42 billion in H1, 2021.
The company stated that the itny recorded a strong balance sheet as reflected in its half-year results for the 2021 financial year despite the impact of COVID-19 on businesses.
According to NB, beyond the impact of the COVID-19 pandemic, the statement further disclosed that the huge impact of excise duty increase, as well as an all-time high inflation figure recorded by the Nigerian economy, could not affect the improved performance of the company for the period under review.
It added that “the operating environment remains challenging with the imposition of tariff and increase in Value Added Tax from per cent to 7.5 per cent which put huge pressure on revenue and profitability of the business.”
The company assured its stakeholders that it would continuously monitor and evaluate its financial position and performance in the light of the pandemic and would report thereon as may be appropriate.
Also, analysts at Cordros Securities Limited noted that NB’s topline performance reflects the firm’s recovery to pre-pandemic levels.
They added that, “we are impressed with the growth in earnings delivered by Nigerian Breweries, and we believe the company is best-positioned amongst its peers to brave the current macroeconomic headwinds and deliver improved earnings in Q3, 2021.”