Heineken NV, the world’s third-largest brewer and majority shareholder in Nigeria Breweries just released its 2014 Full year results showing an increase in revenues and profit, despite volatility in developing markets and price pressure elsewhere. Group revenue grew 3.3% organically, with group revenue per hl up 1.4%, Group operating profit (beia) up 7.8% organicallyNet profit (beia) of €1,758 million, 14% higher organically. But of all importance is their statement on earnings emanating from developing markets such as Nigeria. According to the release
Group operating profit (beia) grew 7.8% on an organic basis, benefiting from higher revenues and improved cost efficiencies partly offset by higher marketing and selling expenses. Group operating profit (beia) in developing markets grew 10% organically, reflecting strong profit contributions from Mexico, Nigeria, Brazil and Vietnam, partly offset by lower profitability in Poland and Compañía Cervecerías Unidas S.A. (CCU). Group operating profit (beia) margins expanded by 80 basis points to 15.9%.
This perhaps suggest Nigerian Breweries is on track to post strong results at the end of the year. In its 9 months earnings released last year pre-tax profits were up 10% and profit after tax even higher by about 11%. Anything close to after when it announces its full year results will likely send its share price higher.