Beta Glass Plc’s reported revenue for Q2 2020 dipped year on year (YoY) by 41.6% from N7.32 billion to N4.27 billion. Compared with the previous quarter (Q1 2020), the company’s revenue dipped by 39.6%.
A cursory analysis of the company’s results indicates the company posted a loss after tax for the first time, according to the results on NSE from 2012, in eight (8) years, as companies continue to battle the impact of the COVID-19 pandemic disruption on businesses.
Revenues from the sales of glassware and bottles dipped in the period under review, from N7.32 billion recorded in the corresponding period of 2019 to N4.27 billion in Q2 2020. Also, Revenue from local sales plunged by 38.15% (YoY) from N6.71 billion to N4.15 billion while revenue from other countries dipped by 80.6% from N604.01 million to N117.05 million.
The Earnings Per Share (EPS) of the company declined by 107.02% in Q2 2020 from N2.85 in Q1 2020 to a negative value of N0.20. Compared with the same period last year, EPS declined by 109.2% from N2.18. The decline in distributable profit by 107.09% from N1.09 billion recorded in the second quarter of 2019 relative to a loss of N101.18 million Q2 2020 contributed to the decline of the EPS.
Beta Glass Plc’s shares were listed on the floor of the NSE on July 2nd, 1986. The shares currently trade at N55.40 per unit. The highest price for a unit of share in 52 weeks was N70 and the lowest N53.80. A total of 22,102 units was sold in the last seven days trades. Shares outstanding is 499,972,000 units and its market capitalisation is N27.69 billion.
Greif Nigeria Plc operates in the same sub-sector as Beta Glass Plc, Packaging/Containers. Greif Nigeria Plc’s share price is N9.1. Its last seven days trades dates back to January 27th, 2020, with total volume sold to date 703 units. Shares outstanding is 42,640,000 units and its market capitalisation is N388.02 million.
Beta Glass PLC is one of the oldest glass manufacturing and distribution companies in Nigeria, listed on the Nigerian Stock Exchange (NSE) in 1986 and incorporated in 1987. Beta Glass Plc is a subsidiary of Frigoglass Industries Nigeria Limited (the parent company), which holds 61.9% of the ordinary shares of the Company. The ultimate controlling party is Frigoglass S.A.I.C, Athens.
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Beta Glass Plc provides superior packaging solutions to a variety of customers operating in the soft drinks, beer, spirit, cosmetics and pharmaceutical market segments through a wide range of glass containers. COVID-19 pandemic disruption on the operations of Beta Glass Plc as well as its customers affected results negatively. In this instance, the company’s top customers are brewers and soft drink makers that have been hit hardest by the Covid-19 lockdown. Lower demand from customers ensured drop in sales. Inventories increased by 26.73% from N6.54 billion as at December 2019 to N8.31 billion in the year under review and by 21.85% compared to the previous quarter.
Most of the brewery companies recorded drop in revenue in Q2 2020. A case in point is Nigerian Breweries Plc, the pioneer brewing company in Nigeria, that recorded a 17.49% drop in revenue from N83.20 billion in Q1 2020 to N68.65 billion. It also fell by 21.01% compared to 86.91 billion recorded in the corresponding quarter of 2019.
While the company hopes to bounce back in the near future, the sector faces an uncertain future with the planned phasing out of the production of certain high concentration alcohol. The Director-General of the National Agency for Food Drugs Administration and Control (NAFDAC) indicated that plans are underway to phase out the production of alcohol in sachets, small volume glass and Poly-Ethylene Terephthalate (PET) bottles. This may likely impact the sector positively or negatively.