Nigeria Breweries Plc has recorded an upbeat in its 2021 financial performance as the firm saw a 71.8 percent increase in net profit to N12.93 billion, a recovery from the pandemic year 2020, when they recorded an all-time low-profit 0f N7.53 billion, findings by BusinessDay reveals.
The firm’s 2021 profit is on the back of an increase in sales of alcohol as the company’s revenue increased by 29.7 percent to N437.19 billion from N337.01 billion in the previous year.
The firm’s cost of sales also increased to N276.87 billion from N218.36 billion last year. However, their gross profit increased by 35.2 percent in the year 2021 to N160.41 billion from N118.69 billion the previous year.
Nigerian Breweries’ gross profit margin, which represents the amount of money a company retains after incurring the direct costs associated with producing the goods it sells, resulted in 35.2 percent.
Further analysis by BusinessDay shows that the company’s net profit margin increased to 2.96 percent from 2.23 percent the previous year.
Contributing to Nigeria Breweries’ profit was the firm’s other income which increased by 459 percent to N4.63 billion in the full year 2021 from N828 million in the year 2020.
It consists of N2.95 billion from the gain on right-of-use derecognition, N1.45 billion from the sale of scrap, N135.1 million from management services, N56.17 million from income from insurance claims, and N32.2 million from the gain on disposal of property, plant and equipment.
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In the period under review, the alcohol company saw a marginal increase in finance income and a decrease in finance cost.
The finance cost for the company declined by 18 percent to N11.07 billion from N13.5 billion in the year 2020 while finance income increased to N313 million from N246 million.
However, Nigeria Breweries’ cash and cash equivalents as at 31st December 2021 declined to N16.73 billion from N30.37 billion.
This consists of Net cash from operating activities which was N91.57 billion, Net cash used in investing activities was a loss of N61.01 billion and Net cash used in financing activities was N41.19 billion.
Despite this, there was an increase in the Beverage company’s earning per share ratio to N157 from N92.
Their total assets grew to N485.52 billion as of December 2021 from N445.86 billion, in December 2020 while their liabilities increased to N313.61 billion in December 2021 from N284.68 billion in December 2020.
Nigerian Breweries has a market cap of N383.6 billion with a stock price that declined by 1.04 percent to N47.5 as of Thursday, 17 February 2022 from N48 year to date.
Recall, Nigerian Breweries’ profit after tax has been having a downward trend since 2014 when it recorded its highest profit of N43.08 till date, the following year, the company’s profit declined to N38.06 billion.
The profit further declined to N33 billion and then to N28.39 billion in the year 2016 and 2017 respectively. Likewise in 2018 and 2019, the profit after tax reduced further to N19.4 billion and N16.11 billion respectively until 2021 when it saw an increase compared to the previous year.
