Nigerian Breweries’ recorded net revenue of N393.4 billion in the nine months of 2022, up 27.2 percent from N309.3 billion in the corresponding period of 2021.
The brewery saw its input cost consume 60.7 percent of its net revenue in the nine months period of this year.
Nigerian Breweries’ profit for the period surged to N14.75 billion in the nine months of 2022, indicating a 79.6 percent increase from N8.21 billion in the same period of 2021.
Here are the seven metrics used to depict its financial performance in the nine months period of 2022.
Profit Margin
Nigerian Breweries’ profit margin, the net income or profits it generates from sales revenue grew by 109 basis points to 3.75 percent in the nine months of 2022 from 2.66 percent in the corresponding quarter of 2021. Despite the growth, it was lower than 8.89 percent recorded in the nine months of 2017.
Gross profit margin
The brewery recorded a gross margin of 39.28 percent in the nine months of 2022 from 35.74 percent in the corresponding period of 2021 which indicates an increase of 354 basis points.
OPEX Margin
The firm’s operating expenses (OPEX) margin or ratio stood at 30.9 percent in the nine months of 2022,290 basis points increase from 28 percent in the nine months of 2021.
The operating ratio shows how efficient a company’s management is at keeping costs low while generating revenue or sales.
Operating expenses increased by 40.2 percent increase to N121.6 billion in the nine months of 2022, the highest in five years from N86.7 billion in the same period of 2021.
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Operating cash flow ratio
Nigerian Breweries’ operating cash flow ratio stood at 0.01 in the nine months of this year, the lowest in five years from 0.21 in the corresponding period of 2021.
The operating cash flow ratio is a measure of the number of times a company can pay off current debts with cash generated within the same period. A high number, greater than one, indicates that a company has generated more cash in a period than what is needed to pay off its current liabilities.
Current ratio
The brewery’s current ratio stood at 1.50 in the nine months period of 2022 from 1.58 in the nine months of 2021.
The current ratio is a liquidity ratio that measures a company’s ability to pay short-term obligations or those due within one year. It tells investors and analysts how a company can maximize the current assets on its balance sheet to satisfy its current debt and other payables.
Working Capital ratio
Nigerian Breweries’ working capital ratio stood at 184.4 in the nine months period of 2022 from 167.5 in the nine months of 2021.
The working capital ratio shows the ratio of assets to liabilities which implies how many times a company can pay off its current liabilities with its current assets.
Earning per share
Nigerian Breweries’ earnings per share rose to N182 in the nine months period of 2022, the highest in five years from N102 in the preceding period of 2021.
