Nigerian Breweries Records 39% Profit After Tax in Q1 2021

Nigerian Breweries, which is Nigeria's biggest beer manufacturer, has recorded a profit of 39 percent which was fuelled by a significant rise in beer sales during the months of January to March. The company's profit went up to N7.6 billion in Q1 2021, compared to the N5.5 billion it recorded in the corresponding period the previous year (Q1 2020).

According to the unaudited earnings report of the company released earlier, the company's net revenue for Q1 2021 soared to N105.6 billion, 27 percent stronger than the figure posted in the corresponding period of last year.

It recorded a profit before tax (PBT) of N11.5 billion, about N3 billion higher than the previous year's, which was N8.3 billion.

Profit after tax (PAT) also climbed, as the brewer recorded N7.7 billion, a rise of 39.1 percent from last year's N5.5 billion.

Total assets contracted by 0.10 percent, largely due to a tumble in cash and cash equivalents from N30.4 billion to N18.4 billion.

The company said, in a statement signed by its secretary, Uaboi Agbebaku,

“The impact of Coronavirus (Covid-19) pandemic on the economy and by implication, the Company continued during the period under review. Our priority remained to protect the health, safety, and welfare of employees, customers, and partners. We regularly monitored and evaluated the Company’s financial position and performance in the light of the pandemic; our Balance Sheet remained strong.”

Earnings per share (basic and diluted) stood at N0.96, compared to the N0.69 recorded in the same period of 2020.

The brewer is expected to ramp up production this year, as it commissioned an automated bottling in Ijebu Ode, Ogun State valued at N5.1 billion. This has the capacity to produce 24,000 bottles per hour.

The company's stock closed Tuesday's trading session at N52.00 per share on the Nigerian Stock Exchange. The stock NB began the year with a share price of N56.0 but has lost 7.14% off that price valuation, ranking it 119th on the NSE in terms of year-to-date performance. The share price has, however, recorded an increase of 7.22% in recent weeks - since March 26.