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Nigerian Breweries records N14.7bn profit in three months

By BusinessNews Staff on May 2, 2014

Leading brewing firm, Nigerian Breweries Plc, has announced a profit before tax of N14.7 billion for the in the first quarter ended March 31, 2014, showing an increase of 8.3 per cent over the N13.59 billion recorded in the corresponding period of 2013.

Nigerian Breweries showed resilience in the face of challenging operating environment and ended the Q1 with a revenue of N68.97 billion, up by 6.8 per cent from N64.57 billion recorded in 2013.

Cost of sale, distribution and administrative expenses went up. But the company was able to reduce its finance charges by 43 per cent, decreasing from N1.592 billion to N907 million.

Consequently, Nigerian Breweries posted a profit before tax of N14.71 billion, up from N13.58 billion in the corresponding period of 2013. Profit after tax also rose from N9.416 billion to N10.1 billion.

Earnings per share improved from N1.25 to N1.33, raising hope of a higher dividend pay-out at the end of the year.

The Company Secretary and Legal Adviser, Nigerian Breweries, Mr. Uaboi Agbebaku, said in a statement barring any unforeseen circumstance, the Board expects that the positive result recorded in the Q1 will be sustained in the next quarter.

Nigerian Breweries had a successful 2013, recording net profit of N43.1 billion, while the directors recommended gross dividend of N34 billion, translating into N4.50 per share.

The Managing Director/Chief Executive Officer of the company, Mr. Nicolaas Vervelde, had explained that the company recorded a revenue of N269 billion and profit before tax of N62.2 billion, showing an increase of 6.3 per cent and 11.9 per cent over the N252 billion and N55.6 billion respectively recorded in 2012.

According to him, Nigerian Breweries maintained its leadership position in the market in spite of the challenging operating in environment in 2013.

“Despite the difficult operating environment, we recorded growths in all segments of the market and indeed out-perform the market. We sustained our enviable leadership position in the market,” Vervelde said.

[This Day]

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