Nigerian Breweries Plc (NB) just released its audited financial statement 2021 results ended December 31, 2021, revealing outstanding top and bottom-line growth, with profit after tax growing to as much as NGN12.927 billion.
The company whose ownership makeup comprises of Heineken Brouwerijen B.V(37.73%), Distilled Trading International BV (16.36%), Stanbic Nominees Nigeria Limited (15.53%), other individuals and institutions (30.89%) has been in the Nigerian alcoholic and non-alcoholic beverages for more than 70 years has to its credit reputable brands that have been part of the history and cultural heritage of the country.
Some of its well-known brands are Star lager beer, Star Radler, Tiger Beer, Fayrouz, Maltina, Malta Gold, and several others.
A copy of the audited financial statement for the full year ending December 31, 2021, was sent to the management of the Nigerian stock exchange as it is customarily done.
This copy for investigation purposes can be unearthed at the corporate disclosure page of www.ngxgroup.com website.
- An examination of the report revealed that the company continues to be a trendsetter in the alcoholic and non-alcoholic beverages industry with dominant brands such as Maltina, Amstel Malta, and Goldberg making their marks
- The report showed that revenue activities expanded with contributions from subsidiary companies such as 234 stores limited, Benue Bottling Company Limited and several investments projects.
- Revenue grew by 29.73% from NGN337 billion in December 2020 to NGN437.196 billion in December 2021. The revenue makeup is comprised of revenue from local consumption (Nigerians) and earnings derived from the export market. 99.97% of revenue which is NGN437.16 billion was obtained from the local market while the remaining 0.03% which is NGN128.8 billion was from the export market.
- The report also showed an absence of concentration risk as was seen in the past. The report states that no single customer either at home or abroad contributed to as much of 10% of its earnings. This diversification strategy signifies growth and less dependence on any part of the country or outside the country for revenue. This also shows that the company is strong enough to withstand demand shocks and pressure both at home and from abroad.
- Incomes from other sources such as sales of scrap, management services, gains on disposal of property, plant, and equipment, gains on right-of-use derecognition, income from insurance claims grew by 82% from NGN828.1 billion in December 2020 to NGN4.63 billion in December 2021.
- Interest income earned on bank deposits grew by 27.30% from NGN246.3 in December 2020 to NGN313.52 billion. This growth showed how liquid the company is.
- Finance cost coming from charges on loans and borrowings, overdraft, the unwinding of discount on employee benefits, interest expense on lease liabilities dropped impressively by 17.4% from NGN13.5 billion in December 2020 to NGN11.154 billion in December 2021. This decline was a result of a drop in interest payment on loans and borrowings, and the unwinding of discounts on employee benefits
- Unfortunately, the company’s exposure to foreign exchange risk caused it a loss of NGN7 billion as against N4.8 billion in December 2020.
- Despite the directors’ earnings which declined by 25.86% from NGN702.54 million in December 2020 to NGN520.88 million, the profit before tax (PBT) grew by 104.39% from NGN11.708 billion to NGN23.930 billion in December 2021.
- Personal cost of the company showed that the company increased the salaries, wages and allowances by as a way of promotion, incentives rewards for performing staff and others to accommodate the shock to earnings caused by foreign exchange volatility. Thus salaries, wages, and allowances grew by 134.1% from NGN29.87 billion in December 2020 to NGN40.35 billion in December 2021. A further breakdown showed that the production department had more than 53.7% of the total workforce (1,461) despite a drop of 240 people from the December 2020 figure of 1,449.
- Tax expense grew by 164.10% from NGN4.182 billion in December 2020 to NGN11,003 billion in December 2021.
- Profit after tax however grew by 71.77% from NGN7.526 billion in December 2020 to NGN12,927 billion.
- Basic earnings per share of 161 kobo (2020: 94 kobo), for Group is 157 kobo (2020: 92 kobo), is based on the profit attributable to ordinary shareholders of ₦12,927,163 (2020: ₦7,525,621,000), and on the 8,042,944,463 ordinary shares of 50 kobo each, being the weighted average number of ordinary shares in issue (2020: 7,996,902,051)
- A total dividend payment of NGN12.921 billion to shareholders by the company was approved by the management board at the forthcoming Annual General Meeting (AGM), that is, 160K per ordinary share of 50 kobo each.
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