Nige­rian Brew­eries re­ports H1 rev­enue drop to N151bn

…also profit dips to N5.7bn

Business Day (Nigeria) - - LIVE @ THE EXCHANGES -

The Board of Direc­tors of Nige­rian Brew­eries Plc re­leased the Com­pany’s re­sults for the half-year (H1) pe­riod ended June 30, 2020.

Ac­cord­ing to the brewer’s unau­dited and pro­vi­sional re­sults filed with The Nige­rian Stock Ex­change (NSE), the Com­pany rev­enue de­creased to N152 bil­lion for the pe­riod un­der re­view from a high of N170.2bil­lion in H1 of 2019. Also, its Profit Af­ter Tax (PAT) of N5.7 bil­lion in H1’20 de­creased from N13.3bil­lion in H1’19.

The half-year re­sults for the 2020 fi­nan­cial year show a strong bal­ance sheet for the Com­pany de­spite sev­eral fac­tors that neg­a­tively im­pacted on the Com­pany’s op­er­a­tions – such as an in­crease in Ex­cise Duty, a rise in in­fla­tion, an in­crease in VAT from 5per­cent to 7.5per­cent, as well as the im­pact of the coro­n­avirus (Covid-19) pan­demic on busi­nesses world­wide. De­spite these chal­lenges, the Com­pany’s fi­nan­cial po­si­tion shows sta­bil­ity and sus­tained prof­itabil­ity.

To sup­port the against the Covid-19 demic, the Com­pany, fight pan­dur­ing the pe­riod un­der re­view, made var­i­ous do­na­tions in cash and kind val­ued at about N531 mil­lion out of a phased com­mit­ment of N600 mil­lion to the Fed­eral and State Gov­ern­ments’ Covid-19 Re­lief Funds.

The Board of Direc­tors com­mended the Com­pany’s Man­age­ment for its ef­forts to mit­i­gate the im­pact of the pan­demic on the busi­ness, as well as the pru­dent man­age­ment of its re­sources as re­flected in a 7per­cent re­duc­tion in ex­penses in­curred on mar­ket­ing, dis­tri­bu­tion, and ad­min­is­tra­tion. The Board ex­pressed con­fi­dence that the Com­pany is well-po­si­tioned to con­tinue to de­liver re­turn on in­vest­ment to Share­hold­ers.

Ac­cord­ing to the Board, the Com­pany’s pri­or­ity dur­ing this pe­riod “re­mains en­sur­ing the health, safety and wel­fare of em­ploy­ees, cus­tomers and part­ners.”

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