Nigerian Breweries Plc released its FY Audited Financial Statement, revealing a 29.74% growth in revenue from N337.01 billion to N437.20 billion in the current period. The breweries company reported a profit after tax of N12.67 billion, reflecting a growth of 71.98% from N7.37 billion in the corresponding period of 2020.
The most capitalized brewery recorded positive result on the back of the inflationary pressures during the review period, which most Fast-moving consumer goods (FMCGs) benefitted from, especially during the festive season. It is also worth noting that Nigerian Breweries generates most of its revenue in Nigeria.
Revenue from Nigeria made up 99% of the company’s total sales, appreciating by 29.76% from N336.90 billion to N437.16 billion. While revenue from exports stood at N128 million.
Key highlights of the report
- Other Income for the period was generated mainly through the sale of scraps, and gain on right-of-use derecognition which were both recorded as N1.45 billion and N2.95 billion, respectively.
- Advertising and sales promotion costs grew by 58.80% from N24 .86 billion a year earlier to N39.48 billion suggesting that aggressive marketing and distribution was a major driver of sales.
- Interest income on bank deposits was recorded as N314 million, while finance costs stood at N11.07 billion during the period.
- Personnel expenses grew by 21.04% from the prior-year period, subduing growth in net profit for the period, recorded as N49.61 billion.
- Depreciation of plant, property, and equipment expenses as well amounted to approximately N34.12 billion in the period under review, as contained in the financial statement.
- During the period, taxation expenses surged by 162.09%, significantly subduing bottom-line profit.
- The company’s net assets increased by N10.73 billion from N161.18 billion recorded as at December 2020 to N171.91 billion in the period under review. Total assets, however, stood at N485.52 billion.
- Nigeria Breweries Plc is currently trading at N48.00 per share and its market capitalization stands at N387.64 billion as at Friday, February 21, 2021. Year-to-date performance shows that the share price of the company has lost 4.00%.