Business - Companies
Updated: April 24, 2021

Nigerian Breweries Announces Impressive Q1 Performance

By Oluwatosin Ogunjuyigbe
April 24, 2021
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Nigeria's largest beverage manufacturer, Nigerian Breweries Plc, disclosed that it made a 39 percent year-on-year growth in profit to N7.66 billion for the first quarter of 2021.

The Lagos-based brewer made this known in its unaudited financial statement for the first three months of the year, ended March 31st, 2021, signed by Company Secretary Uaboi Agbebaku.

Bolstered by a significant increase in sales, the company reported a 27 percent growth in net revenue to N105.68 billion from last year's N83 billion, strengthening the company's fundamentals to record a 39.1 percent increase in earnings per share to N0.96 from last year's N0.69.

Nigerian Breweries Plc also showed that it had been financially optimizing its operations when it recorded a 32.5 percent increase in operating profit to N14.50 billion from last year's N10.96 billion.

The company has managed to stretch its profits despite persistently rising input costs and a 36.56 percent increase in the cost of sales. According to the company's management, input costs have been largely buoyed by increased VAT, the COVID-19 pandemic, continuous currency devaluation, and FX scarcity.

Investors seemed to also be impressed by the company's performance, as its shares gained 2.2 percent yesterday, ending its flat run since April 12 to close at N51.2 per share and raise its market capitalization to N409.44 billion.