NB posts N393.3 billion Q3 revenue, declares 40 kobo interim dividend

Nigerian Breweries (NB) Plc has announced revenue of N393.3 billion for the third quarter (nine months) ended September 30, 2022. The figure represents an increase of 27.2 per cent over N309.22 billion recorded in the corresponding period in 2021.

In a statement signed by the Company Secretary/Legal Director, Uaboi Agbebaku, the revenue growth was driven by pricing but was, however, offset by higher input cost arising from increased rate of inflation and higher energy costs.

Analysis of the results revealed that cost of sales rose significantly by 20.2 per cent from N198.75 billion in 2021 to N238.9 billion in 2022 while marketing, distribution, and administration expenses also grew by 40.1 per cent from N86.3 billion in 2021 to N120.95 billion in 2022.

Apart from volume and cost challenges, which affected business performance negatively in Q3, 2022, there was increased pressure on consumer disposable income. Nevertheless, the company performed relatively well in the period led by a strong premium portfolio of Heineken, Tiger and Desperados.

According to the company, despite the volume and cost challenges in the third quarter, the strong performance recorded in the first half of the year ensured that operating profit grew by 44 per cent and Profit after Tax (PAT) rose by 80 per cent.

Based on the improved performance, the directors of the company are recommending an interim dividend of N3.29 billion payable to shareholders at 40 kobo each per ordinary share of 50 kobo.

The company assured stakeholders that it is well positioned to take advantage of any upswing in the market and maintain its leadership position while being cautious about the development of input costs and consumer demand in the remaining period of 2022.