Nigerian Breweries Plc Records N81.88 Billion in Q1 2024 Report

Nigerian Breweries Plc recently reported its Q1 2024 report, highlighting that the brewing company recorded a total gross profit of N81.88 billion in the quarter ending March 31.

This significant increase signifies an 87% increase compared with the corresponding period, which settled at N43.88 billion in Q1 2023, which ended on March 31, 2023.

Nigerian Breweries Plc disclosed this in its unaudited condensed interim financial statements submitted to the Nigerian Exchange Ltd. in Lagos.

However, its NB MD, Han Essaadi, and Finance Director, Bernardus Boer, signed the statement.

Additionally, Nigerian Breweries recorded a significant rise in its group's total assets, which rose by 8% to settle at N856.79 billion as of March 31, compared to N795.87 billion recorded in the same period in 2023.

However, NB's total equity for the quarter under review declined by 82.3% to settle at N11.41 billion compared with the corresponding period, which recorded N63.28 billion as of December 31, 2023.

It was also reported that Nigerian Breweries' total liability for Q1 2024 rose by 15.42% to settle at N845.38 billion, compared to the corresponding period, which settled at N732.59 billion for the year ended December 31, 2023.

Nigerian Breweries also recorded a loss after tax of N52.089 billion for Q1 2024, which ended March 31. This signifies a 386.13% increase compared to the corresponding period, which settled at N10.715 in the same quarter ended March 31, 2023.

Nigerian Breweries' loss before tax was recorded at N65.58 billion, an increase of 276% compared to the corresponding period of the previous year when it settled at N17.44 billion.

Commenting on the results, Mr Essaad stated that the company's performance is attributed to seasonal fluctuations caused by weather conditions and festivities.

He added that the brewing company's full-year results and volumes were also dependent on the performance in the peak-selling season, typically resulting in higher revenue and profitability in the last quarter of the year.

He said, "The impact of seasonality is also noticeable in several working capital-related items such as inventory, trade receivables, and payables."

Back Story

The News Agency of Nigeria (NAN) reported that Nigerian Breweries recorded a net loss of N106 billion for the year ended 2023, as against N13.93 billion posted in its 2022 financials, indicating a decline of 860 percent.

It also said that Nigerian Brewery's gross profit for the year ended 2023 also fell by 0.3% to N212.5 billion, compared to N213.20 billion posted in the previous year.

While its operating profit declined by 15.3% to 45 billion, against N53 billion recorded in the corresponding year.

However, the firm disclosed it recorded a loss in operating profit due to higher input costs and one-off reorganisation costs, despite strong and aggressive cost savings and other efficiency measures.

On Friday last week, shareholders of Nigerian Breweries Plc unanimously approved a rights issue to raise N600 billion at the company's 78th Annual General Meeting (AGM) in Lagos.

With this development, the Board is now authorised to restructure capital through a rights issue.

This will enable all the company's shareholders to acquire more shares in proportion to their holdings at a price determined by the Board, taking into 

consideration of the market conditions.