The world third largest brewer and the majority owner of Nigerian Breweries Plc, Heineken posted a 4.6% drop in Net Profits to 1.59billion euros for 2013 compared to $2.2billion posted a year earlier. Central and eastern Europe have been particularly difficult of late for Heineken, which cut its outlook for the year at the time of its third-quarter results in October. The company also blames weak demand in Nigeria and Mexico for the earnings drop
Bloomberg reports, the maker of Strongbow cider and Amstel beer also cited a “delayed” economic improvement in countries including Nigeria and Mexico at the time. Annual net income before some items fell by 4.6 percent to 1.59 billion euros ($2.2 billion), matching the average estimate in a Bloomberg survey of 17 analysts.
This result serves as an insight into the kind of result we are to expect from Nigerian breweries when it releases its 2013 results in the next coming weeks. Despite the competition NBL has at least posted 6% YoY growth in Net profits following its 9months results. Their share price is currently trading at its one year low of N149.