Nigerian Breweries released its 2013 9 Months result showing revenue rose 5.3% to N190.3billion (2012 9 Months: N180.7billion). Gross Profit was N92.3billion as cost of sales sliced 51.5% off revenues. Operating expenses cost another N50.6billion as the company post operational profit of N41.7billion (2012 9 Months: N42.2billion). The company post a pre-tax profits of N38.5billion 3.7% more than the N37.1billion it posted a year earlier.
- The Quarter on Quarter results reveals a clearer insight into the company’s operations for the last 3 quarters of the year. The 3rd quarter saw a decline in margins compared to the 1st and 2nd mostly due to a large drop in revenue. Revenue for Q3 was about 13billion lower than Q2 and about N8billion lower than Q1. The company has this lowered its forecast for the year as competition and pressure on demand takes its toll on market share.
- Working capital was negative at about N29billion a worrying sign considering the company still owes about N17.5billion in current tax liabilities. It also owes its suppliers and other non-trade creditors a total of N58billion compared to N23.2billion which it is being owed.
- It also appears interest cost have yet to reflect fully on the company’s operations as most are perhaps capitalised.
- A return on equity of 20% for 9months is quite pleasant in this economy, however the current market price makes it rather poor.
Nigerian Breweries 2013 9 Months result was released in the website of the NSE[/upme_private]