NB posts N77.55b revenue, N10.5b profit in Q1

Nigerian Breweries (NB) Plc has posted a revenue of N77.55 billion and profit after tax of N10.45 billion in its first quarter operations.

Specifically, the company’s unaudited result for the first quarter ended March 31, showed 11 per cent increase in revenue from N69.92 billion in 2015 to N77.55 billion in the period under review, while net profit stood at N10.45 billion, a four per cent increase over the N10.10 billion declared in the corresponding period in 2015.

Operating activities of the firm also improved by 10 per cent from N16.37 billion in the first three months of 2015 to N17.99 in the corresponding months in 2016.

According to a statement by NB’s directors, the 11 per cent growth in revenue was a reflection of the company’s strong and effective route to market, increased sales during the Easter period as well as higher number of sales days in the period as against the lower number of days recorded in the corresponding period of 2015 due to the general elections.

It explained that despite the current challenging operating environment leading to consumer down-trading, rising inflation, increased cost of financing due to higher foreign exchange cost and increased input cost amongst others, the company was still able to return the four per cent increase in profit after tax.

It added that the one-off merger costs incurred in the first quarter of 2015 also occasioned the increase in profit.

The statement, signed by the Company Secretary/Legal Adviser, Uaboi Agbebaku, further noted that the board expects the operating environment in 2016 to continue to be very challenging.

He however, added that the company is in a good position to take advantage of any upswing in the market, especially with its agenda of cost leadership and market leadership strategy supported by innovation.