Nigerian Breweries Posts 11% Profit Plunge

Nigerian Breweries Plc has announced a profit after tax (PAT) of N19.06 billion for the half year ended June 30, 2016, indicating a decline of 11 per cent compared to N21.477 billion recorded in the corresponding period of 2015.

The unaudited numbers showed the company ended the H1 with revenue of N157.37 billion, an increase of four per cent over the N151.67 billion declared in the corresponding period in 2015.

Gross profit stood at N73.983 billion, as against N74.224 billion. Administrative expenses reduced from N11.533 billion to N10.849 billion. However, net finance cost jumped from N2.917 billion to N8.392 billion. As a result, profit before tax fell from N30.989 billion to N25.546 billion in 2016, while PAT declined from N21.477 billion to N19.066 billion in 2016.

The Board of Directors of Nigerian Breweries, in a statement signed by the Company Secretary/Legal Adviser, Mr. Uaboi Agbebaku, explained the company was able to deliver top line growth with revenue increasing by four per cent compared to the first six months of 2015.

However, the Brewer added that rising inflation combined with higher inputs costs as a result of scarcity of foreign exchange, led to a flat operating profit compared with the preceding year.