H1 2022: Nigerian Breweries posts N274.03bn revenue on inflationary pressure

The Board of Directors, Nigerian Breweries Plc has announced a total sum of N274.03billion as revenue for the first half of the 2022 financial year, which ended on June 30, 2022.

The company’s performance comes on the heels of high inflation, during which consumers and businesses both had to contend with the rising cost of products and services. As a result, buyers now pay more for the same amount of goods.

According to the unaudited report and provisional results filed with the Nigerian Exchange Limited, the company experienced a 31 per cent growth in revenue compared to the N209.22 billion recorded in the corresponding period in 2021.

The results also revealed Profit After Tax for the six-month period under review rose by 142.8 per cent, from N7.86 billion to N19.08 billion. Similarly, basic earnings per share in H1 2022 was 237 kobo as against 97 kobo that was recorded in H1 last year.

During the six-month period ended 30th June 2022, the Company acquired, plant and equipment with a cost of N27.2 billion as against six-month period ended 30th June 2021 which was N17.9 billion.

According to a statement signed by the company secretary/Legal Director, Uaboi Agbebaku, the company’s increase in profit was driven mainly by top line growth resulting from its pricing strategy and better mix.

Further analysis of the results revealed that the Cost of Sales increased by 18.3 per cent, from N131.34 billion in H1, 2021 to N155.35 billion in 2022 in the same corresponding period.

Marketing, Distribution, and Administrative expenses also rose by 44.6 per cent, from N58.42 billion in H1, 2021 to N84.45 billion in H1, 2022, driven by the increase in commercial activities post-COVID, rising diesel prices and higher wages arising from collective labour agreementsUaboi also noted that although interest expenses were lower, the net finance cost was higher due to foreign exchange losses arising from a higher cost of meeting foreign obligations to overseas partners.

“Despite these challenges, our business continues to build momentum and deliver consistent profitable growth even in the context of a very challenging operating environment. Our best-in-class portfolio of brands provides a unique platform that positions us well to lead and grow the beer and malt category and drive superior long-term value creation,” the statement added.

The company, therefore, assured its stakeholders that it would continuously evaluate its financial position and business performance to ensure a strong balance sheet, while remaining dynamic in its response to operational challenges vis-à-vis the economy.

In line with its certification and status as a Great Place to Work company, it would also continue to prioritise the health, safety, and welfare of its employees and partners.