Beer makers’ input cost gulps 68% of total revenue

Four beer makers’ input cost has gulped 67.6 percent of total revenue in 9M’2023, indicating 230 basis points increase from 65.3 percent in the same period of 2022.

The firms which included international breweries, Guinness Nigeria, Champion Breweries, and Nigerian Breweries recorded cumulative input costs of N441.56 billion in 9M’2023 from N401.87 billion in the same period of 2022.

International Breweries saw its input cost gulp 79 percent of its total revenue in 9M’2023, while Guinness (69.5%), Champion Breweries (69.3%), and Nigerian Breweries (62%).

The beer makers’ total revenue during the period amounted to N653.48 billion from N615.69 billion.

Firm analysis

Nigerian Breweries

Nigerian Breweries recorded the highest input cost of N249.24 billion in 9M’2023 from N238.92 billion in the same period of 2022.

The firm’s net revenue grew to N401.8 billion from N393.45 billion during the period.

Selling and distribution expenses increased to N101.55 billion from N100.91 billion while administrative expenses grew to N25.06 billion from N20.64 billion.

The firm’s finance income grew to N292.56 million from N258.67 million while finance costs amounted to N18.89 billion from N6.19 billion.

Income tax expenses surged to N20.97 billion in 9M’2023 from N4.36 billion in the same period of 2022.

Nigerian Breweries recorded a loss after tax of N57.19 billion in 9M’2023 from a profit after tax of N14.76 billion in the same period of 2022.

Loss per share amounted to N689 per share from earnings per share of N182 per share.

Read also: Beer makers’ retained earnings plunge, threatens dividend payments

International Breweries

International Breweries’ input cost grew to N145.13 billion in 9M’2023 from N123.16 billion in the same period of 2022.

The firm’s revenue grew to N183.78 billion from N160.43 billion during the period.

Administrative, marketing and promotion expenses rose to N34.71 billion in 9M’2023 from N31.68 billion in the same period of 2022.

Finance income grew to N8.89 billion from N2.79 billion while finance cost increased to N20 billion from N7.11 billion.

Income tax credit charge dropped to N14.96 billion in 9M’2023 from N38.83 million in the same period of 2022.

The firm’s profit after tax grew to N28.55 billion in 9M’2023 from N2.81 billion in the similar period of 2022.

Loss per share stood at N1.06 per share from N0.10 per share during the period.

Read also: Three takeaways from beer makers’ performance in Q1

Guinness

Guinness Nigeria’s input cost stood at N41.4 billion in 9M’2023 from N34.61 billion in the same period of 2022.

The firm’s revenue grew to N59.54 billion in 9M’2023 from N52.85 billion in the same period of 2022.

Marketing and distribution expenses dropped to N8.31 billion from N9.41 billion while administrative expenses dipped to N3.35 billion from N3.58 billion.

Finance income dropped to N563.93 million from N597.5 million while finance expense rose to N4.62 billion from N2.46 billion.

Tax expense amounted to N1.22 billion in 9M’2023 from N1.29 billion in the same period of 2022.

The firm’s profit for the period dropped to N2.6 billion from N2.75 billion during the period.

Earnings per share dropped to N119 per share from N125 per share.

Read also: Q1 2022: Nigerians consuming more alcohol help beer makers record profit growth

Champion Breweries

Champion Breweries’ input cost rose to N5.79 billion in 9M’2023 from N5.18 billion in the same period of 2022.

The firm’s revenue dipped to N8.36 billion in 9M’2023 from N8.96 billion in the same period of 2022.

Selling and distribution expenses rose to N1.34 billion from N1.02 billion while administrative expenses grew to N1.34 billion from N1.14 billion.

Finance income surged to N11.29 million from N75.18 million while finance costs increased to N56.03 million from N50.5 million.

Income tax expenses dropped to N13.79 million in 9M’2023 from N528.41 million in the same period of 2022.

Loss after tax amounted to N77.69 million in 9M’2023 from profit after tax of N1.26 billion in the same period of 2022.

Champion Breweries’ loss per share amounted to N0.99 per share from earnings per share of N16.09.