Nigerian Breweries grows half year profit by 38.80%

Nigerian Breweries Plc reported N209.22 billion revenue for the first half (H1) of the 2021 financial year which ended on June 30, 2021. The company also recorded a Profit After Tax (PAT) of N7.86 billion during the review period.

According to its unaudited and provisional results filed with the Nigerian Exchange Limited (NGX), Nigerian Breweries Plc experienced huge growth in revenue amounting to 37.8percent compared to the N151.80 billion recorded in the corresponding period of 2020.

The results also showed that Profit After Tax (PAT) for the period under review grew by 38.80percent from N5.66billion recorded from H1’20 to N7.86billion. Similarly, basic earnings per share in H1 2021 were 97kobo as against N71kobo that was recorded in H1 last year.

The unaudited and provisional results showed that the Cost of Sales increased significantly, rising from N92.67billion in H1, 2020 to N131.34billion in H1’2021 in the same corresponding period while Marketing, Distribution and Administration expenses increased by 31.8percent from N44.32billion in H1, 2020 to 58.42billion in H1’2021.

The official comment of the company on the unaudited result indicated that the company recorded a strong balance sheet as reflected in its half-year results for the 2021 financial year despite the impact of COVID-19 on businesses.

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Beyond the impact of the COVID-19 pandemic, the statement further disclosed that the huge impact of excise duty increase, as well as an all-time high inflation figure recorded by the Nigerian economy, could not affect the improved performance of the company for the period under review.

“The operating environment remains challenging with the imposition of tariff and increase in Value Added Tax from 5percent to 7.5percent which put huge pressure on revenue and profitability of the business”, the statement added.

The company, therefore, assured its stakeholders that it would continuously monitor and evaluate its financial position and performance in the light of the pandemic and would report thereon as may be appropriate.

The company explained that it would continue to place utmost priority on the health, safety, and welfare of its employees, customers and partners while focusing on efforts to mitigate the impact of the pandemic on the business.