Q1 2024: Nigerian Breweries gross profit up 87%

Mariam Abeeb

The Nigerian Breweries Plc has recorded N81.88 billion gross profit in the first quarter ending March 31.

This represented 87 per cent increase when compared with N43.88 billion posted in the first quarter ended March 31, 2023.

The company disclosed this in its unaudited condensed interim financial statements sent to the Nigerian Exchange Ltd., in Lagos.

The statement was signed by its Managing Director, Mr Han Essaadi, and Mr Bernardus Boer, Finance Director of the Breweries.

The group’s total asset also rose by eight per cent to N856.79 billion as at March 31, compared to N795.87 billion posted in the same period 2023.

Its total equity for the quarter under review dropped by 82.3 per cent to N11.41 billion, in contrast to N63.28 billion recorded as at Dec. 31, 2023.

The group’s total liability as at the quarter ended March 31, advanced by 15.42 per cent, to N845.38 billion, compared to N732.59 billion posted for the year ended Dec. 31, 2023.

The company, however, recorded a loss after tax of N52.089 billion for the first quarter ended March 31, indicating 386.13 per cent increase, compared to N10.715 billion posted in the same quarter ended March 31, 2023.

The group’s loss before tax for the period under review stood at N65.58 billion, representing a rise of 276 per cent, in contrast to N17.44 billion posted in the same period of the previous year.

Essaad said that the performance of the company was subject to seasonal fluctuations as a result of weather conditions and festivities.

He noted that the company’s full-year results and volumes were dependent on the performance in the peak-selling season, typically resulting in higher revenue and profitability in the last quarter of the year.

“The impact of seasonality is also noticeable in several working capital related items such as inventory, trade receivables, and payable,” the managing director said.

The gross profit of the group for the year ended 2023 also fell by 0.3 per cent to N212.5 billion, compared to N213.20 billion posted in the previous year.

Also, the operating profit of the group declined by 15.3 per cent to 45 billion, as against N53 billion recorded in the corresponding year.

However, the firm disclosed it recorded loss in its operating profit due to higher input cost and one-off reorganisation cost despite strong and aggressive cost savings and other efficiency measures.

Also, shareholders of the Breweries Plc, on Friday, unanimously approved capital raising of N600 billion by way of rights issue at the 78th Annual General Meeting (AGM) of the company in Lagos.

With this development, the board now has the authorisation to undertake capital restructuring by way of a rights issue.

This will enable all the company’s shareholders the opportunity to acquire more shares in proportion to their holdings, at a price determined by the Board, taking into consideration the market conditions.