Nigeria Breweries Plc reported an exchange rate loss of N70.6 billion for the second quarter of the year ended June 30th, 2023.
This is according to the information contained in its just published interim report for the first half of the year.
Key highlights 2023 Q2
- Net revenue N154 billion +13% YoY
- Gross Profit N68.4 billion +21.5% YoY
- Operating profit N26.6 billion +119.7% YoY
- Net Finance Cost N77 billion +970.8%
- Pre-tax lossN50.2 billion
- Gross margins 44.4% versus 41.3% YoY
- Operating profit margins 17.3% versus 8.9% YoY
- Working capital -N318.6 billion
- Retained earnings N35.5 billion versus N80 billion (2023 Q1)
- Loss Per Share N4.6
Insights: The losses were a result of the unification of the exchange rate which has led to forex losses upon the revaluation of its dollar-denominated loans.
- The company reported a net loss on foreign exchange of N70.6 billion taking the year-to-date exchange rate loss to N85.2 billion.
- The losses contributed to a massive N47.7 billion reduction in net assets.
- Important to add that the losses did not impact cash as the company still has a healthy cash balance of N34.9 billion.
- However, its negative working capital suggests it has to find money to repay its loans when they fall due within a year. It could also restructure the loans.
- The current losses are likely to impact full-year profits considering that NB also reported a profit after tax of N13.1 billion last year (2022).
- NB has so far reported back-to-back losses in the first two quarters of the year after reporting a loss before tax of N17.4 billion
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Nigerians don’t mind this suffering, only a few of us are worried. Nigerians will only believe in prayers despite the clear indication that God is not responsible.
Tinubu has messed up everything but unfortunately, he is engaging tired hands, legs & brain. We go suffer ooh,
Tinubu, a trained accountant cannot feign ignorance of the implication of his action. Given his gluttonous antecedents and perceived richest-man-on earth ambition I wanna believe the forex market merger was deliberate and calculated to cripple industries so he could turn around to buy them cheaply for his family and friends.
This is ridiculous. Imagine such loss due to just exchange rate factor. You can imagine. Nigerians are not even seeing this as worrisome. They are biased. It’s very unfortunate.