Nigerians are famous for their love of all things alcohol, especially beer.
This explains the availability of quite a handful of brewers across the country. Five of these brewers are listed on the country’s stock market and they include Nigerian Breweries Plc, Guinness Nigeria Plc, International Breweries Plc, Golden Guinea Breweries Plc, and of course, Champion Breweries Plc.
The scorecard for the companies’ latest financial results showed the high cost of production and inflationary environment are making Nigeria’s top beer (alcohol) makers focus more on improving their profitability and financial performance than fighting for market share and brand awareness.
Despite these hurdles, Guinness Nigeria and Champion Breweries braced all odds to shine in net cash from operations with a record of N4.4 billion and N312.8 million respectively.
Within the same period, International Breweries and Nigerian Breweries recorded negative net cash flow of N29.5 billion and N67.87 negative net cash flow from operations respectively.
Firm-by-firm analysis
Guinness Nigeria
Guinness Nigeria’s net cash generated from operating activities amounted to N4.4 billion in the first quarter of 2023, a 66 percent drop from N13 billion in the similar period of 2022.
The net cash used in investing activities amounted to N3.91 billion, up 22 percent from N5.01 billion in the period reviewed.
Net cash used in financing activities stood at a negative of N11.64 billion from a positive of N8.86 billion in the comparable period.
Guinness Nigeria’s cash and cash equivalents grew 10 percent to N58.03 billion in the first quarter of 2023 from N52.68 billion in the first quarter of 2022.
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Champion Breweries
Champion Breweries’ net cash from operating activities amounted to N312.8 million in the first quarter of 2023 from a negative of N284.17 million in the same quarter of 2022.
The brewery’s net cash used in investing activities increased to N922 million, a 123 percent increase from N413.8 million in the comparable periods.
Net cash used in financing activities amounted to N17.29 million, 20.7 percent increase from N14.32 million in the period reviewed.
Champion Breweries’ cash and cash equivalents stood at N1.56 billion in the first quarter of 2023, up 52.3 percent from N3.27 billion in the first quarter of 2022.
International Breweries
International Breweries’ net cash inflow from operating activities amounted to a negative cash flow of N29.5 billion in the first quarter of 2023 from a positive of N6.21 billion in the first quarter of 2022.
The brewery’s net cash outflow from investing activities was at a positive of N4.74 billion from N7.41 billion negative cash flow in the comparable period.
Net cash outflow from financing activities stood at N18.05 billion from a negative of N2.82 billion in the period reviewed.
International Breweries cash and cash equivalents at the end of the period amounted to N29.32 billion in the first quarter of 2023, 53.3 percent increase from N62.78 billion in the first quarter of 2022.
Nigerian Breweries
Nigerian Brewery’s net cash from operating activities stood at a negative cash flow of N67.87 billion in the first quarter of 2023 from N3.91 billion negative cash flow in the first quarter of 2022.
The brewery’s net cash used in investing activities amounted to N2.38 billion in the first quarter of 2023, a 68.3 percent decline from N7.5 billion in the first quarter of
2022.
Net cash used in financing activities stood at N67.92 billion, 283.1 percent from N17.73 billion in the reviewed period.
Nigerian Brewery’s cash and cash equivalents dropped to N19.86 billion in the first quarter of 2023, a 13.8 percent increase from N23.05 billion in the first quarter of 2022.
