Nigerian Breweries records N10.2b profit in Q1

By InstinctBusiness May 8, 20180

Nigerian Breweries Plc started 2018 on a low note as sales and profit contracted within the first quarter.

Key extracts of the interim report and accounts of Nigerian Breweries for the three-month period ended March 31, 2018 showed that sales dropped by nine per cent from N91.3 billion in first quarter 2017 to N83 billion in first quarter 2018. Operating activities declined by eight from N19.2 billion to N17.7 billion. Profit before tax also dropped by 12.6 per cent from N17.4 billion to N15.2 billion. Profit after tax declined by 11.8 per cent to N10.2 billion in first quarter 2018 compared with N11.4 billion recorded in the corresponding period of 2017.

The brewing giant attributed the slowdown sluggish consumer spending, noting that though there are some signs of improvement in the macroeconomic conditions, these are yet to reflect on consumer spending.

The board of the company said it remained confident that it has a clear strategy to deliver a good return on investment to shareholders.

Nigerian Breweries recently paid N25 billion as final cash dividend to the shareholders, raising the total cash dividend for the 2017 business year to N32.9 billion. This represented the entire profit after tax for the year.

A breakdown of the final dividend recommendation indicated that shareholders received a dividend of N3.13 on every share held as at the close of business on March 6, 2018. Nigerian Breweries had distributed N7.9 billion as interim dividend, representing interim dividend per share of N1. The total dividend per share stood at N4.13.

Key extracts of the audited report and accounts of the company for the year ended December 31, 2017 showed that total sales rose by 10 per cent from N313 billion in 2016 to N344 billion. Profit before tax increased from N39.67 billion in 2016 to N46.63 billion in 2017. Profit after tax grew by 16 per cent from N28.4 billion in 2016 to N33 billion. Earnings per share stood at N4.13 in 2017 as against N3.58 in 2016.

Source from The Nation