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Int’l Breweries posts N1.82bn PBT in H1 2022 as sales revenue hits N111.1bn



International Breweries printed impressive top and bottom line in the first half of 2022, overturning the losses recorded in the past four years. Notably, the brewing giant with over 500 brands posted a Profit Before Tax of N1.82 billion, an impressive movement from the loss of N17.22 billion recorded in the comparable period of 2021.

A further breakdown of the company’s half-year 2022 financial statement showed that International Breweries generated a sum of N111.4 billion as revenue, a stellar 36 per cent increase compared to N81.96 billion recorded in the previous year.

In the same vein, gross profit rallied by over 137 per cent to N36.6 billion from N15.4 billion (H1 2021), while gross profit margin improved to 32.9 per cent from 18.8 per cent and 15.7 per cent recorded in H1 2021 and H1 2020 respectively, while gross profit margin improved to 32.9 per cent in the same period from 18.8 per cent.

A cursory look at the data, showed that the gross profit margin recorded in the first half of the year was the highest recorded in the past four years. Also, a 1501.6 per cent increase in its finance incomes ensured a strong performance for the period under review.

The company consolidated on the positives recorded in the previous year, with aggressive marketing strategies which shore up revenue due to increased sales. International Breweries, manufacturers of Trophy Lager, Trophy Extra Special Stout, Budweiser, amongst other top brands recorded a 33.3 per cent revenue growth in 2021, despite macro-economic headwinds.

Despite the rise in inflationary pressure ravaging the cost of operations by most organisations, International Breweries was able to post positive returns in the review period, due to its remarkable cost-effective operations management, adopted by the organisation.

It is worth noting, that improved advertisement costs also aided the increase in sales revenue recorded by the company. Specifically, the brewing giant spent N28.72 billion on administrative, marketing, and promotion in the first six months, against N20.24 billion in H1 2021 and N15.97 billion in H1 2020.

During the company’s 45th Annual General Meeting held on Thursday. 11th August 2022 in Lagos, the Chairman of the Board, HRH Nnaemeka Achebe commended the improvement in the company’s production and sales volume.

“Notwithstanding the challenges experienced, our production volumes continue to increase for the full year. We are very proud of our strong recovery and are delivering historical total volume growth ahead of the industry, with a total revenue of N182.3 billion, that is, 33.3 per cent higher than the prior year.”

“AB InBev was recently recognised by Fortune Magazine as the Most Admired Beer Company in the World. This recognition and our 2021 performance reinforce our commitment in-country to leverage our world class processes thereby delivering consistent growth and eventual returns for all shareholders,” he added.

Similarly, the Managing Director, International Breweries PLC, Hugo Rocha, expressed optimism that the company is strategically positioned to provide better service to its teeming consumers across the country and generate profitable revenue for its investors.

“The continued support of consumers who prefer quality products from our stables is reflected in the outstanding financial performance of the company. We remain committed to creating value and sustaining the confidence of our stakeholders which include our shareholders and our beloved consumers,” he said.

He also added that, “We started 2022 on a positive note and this is because of the growing consumer demand for our brands; robust revenue management; and volumes growth ahead of the industry.”

In the same vein, outgoing Finance Director, International Breweries Plc,Bruno Zambrano, said, “International Breweries experienced a transformation in the last two years.

“Our main focus was to grow the business to return to profitability. After aggressive marketing and incisive research focused on identifying our consumers’ wants and where they consume the products, today, we can comfortably say we’ve gained market share to become the No 2 in the Nigerian beer market.”

“It is our dream to rise to the zenith of the market and from the continuous growth being achieved, we are optimistic that we are on our way to achieving that,” he added.

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capital market

Zenith Bank posts remarkable triple digit topline, bottom line growth



Zenith Bank Plc has announced its audited results for the year ended December 31, 2023, achieving a remarkable triple-digit growth of 125% in gross earnings from NGN945.6 billion reported in 2022 to NGN2.132 trillion in 2023. According to the audited financial results for the 2023 financial year presented to the Nigerian Exchange (NGX), this impressive triple-digit growth in gross earnings resulted in a Year-on-Year (YoY) increase of 180% in Profit Before Tax (PBT) from NGN284.7 billion in 2022 to NGN796 billion in 2023. Profit After Tax (PAT) also recorded triple-digit growth of 202% from NGN223.9 billion to NGN676.9 billion in the period ended December 31, 2023.

The increase in gross earnings is primarily due to growth in interest and non-interest income. Interest income increased by 112% from NGN540 billion in 2022 to NGN1.1 trillion in 2023. Non-interest income grew by 141% from NGN381 billion to NGN918.9 billion in the same period. The increase in interest income is attributed to the growth in the size of risk assets and their effective repricing, alongside the rise in the yield of other interest-bearing instruments over the year. Growth in non-interest income was driven by significant trading gains and an increase in gains from the revaluation of foreign currencies.

The cost of funds grew from 1.9% in 2022 to 3.0% in 2023 due to the high interest rate environment while interest expense increased by 135% from NGN173.5 billion in 2022 to NGN408.5 billion in 2023. Notwithstanding the 32% growth in operating expenses in 2023, the Group’s cost-to-income ratio improved significantly from 54.4% in 2022 to 36.1% in 2023 due to improved top-line performance. Return on Average Equity (ROAE) increased by 118% from 16.8% in 2022 to 36.6% in 2023, underpinned by improved gross earnings, as the Group sought to deliver better shareholder returns. Return on Average Assets (ROAA) also grew by 95% from 2.1% to 4.1% in the same period.

The Group has continued to deepen its market leadership in key corporate and retail deposit segments as customer deposits increased by 69% from NGN9.0 trillion to NGN15.2 trillion in 2023. Its retail drive continues to yield dividends as retail deposits now constitute 46% of total deposits (compared to 44% in 2022) and grew by 77% from NGN3.97 trillion in 2022 to NGN7.04 trillion in 2023, also reinforcing increased customer confidence in the Zenith brand.

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capital market

eTranzact records N2.2bn profit in 2023



eTranzact International Plc on Monday announced a Profit After Tax (PAT) of N2.2 billion for the year ended Dec. 31, 2023, as against N1.18 billion posted in 2022.

Company Secretary of eTranzact, Mr Isaiah Oreweme, said this in the company’s annual report and audited financial statements for the year 2023, sent to the Nigerian Exchange Ltd. (NGX) in Lagos.

Oreweme said that the electronic payment technology and maintenance services company’s Profit Before Tax (PBT) for the year under review stood at N3.2 billion, compared to N1.61 billion recorded in the year 2022.

He stated that the company’s gross profit rose to N8.32 billion at the end of the 2023 financial year from N5.7 billion posted in the previous year.

According to him, the total liabilities of eTranzact leaped to N16.73 billion as at the close of the 2023 financial year, from N10.5 billion recorded in the year 2022.

The company secretary stated that the firm’s total assets also grew to N28.21 billion in 2023, compared to N19.78 billion posted in the year 2022.

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capital market

NGX: Investors lose N220bn



Investors in the Nigerian equities market lost N220 billion at the close of trading on Monday.

This followed the dip in the share value of some entities, including Abbey Mortgage Bank, Champion, Regalins and Chams on the trading floor today.

After five hours of trading at the capital market, the capitalisation crashed to N58.2 trillion from N58.4 trillion recorded at the close of trading on Friday.

Similarly, the All-Share Index (ASI) decreased to 103,047.23 from 103,437.67 achieved by the bourse four days ago.

The market breadth was negative as 17 stocks advanced, 23 declined, while 80 others remained unchanged in 5,302 deals.

Morison Industries led other gainers with 9.91 percent growth in share price to close at N3.33 from its previous price of N2.12 per share.

Omatek Ventures, Computer Warehouse Group (CWG), and Linkage Assurance also raised their share prices by 7.61%, 5.93%, and 5.56 percent per share respectively.

Abbey Mortgage Bank led other price decliners as it shed 9.75 percent off its share price to close at N2.50 from its previous N2.77 per share.

Champion Breweries, Regency Assurance, and Chams Holding Plc completed the list of losers with 9.68 percent, 9.30 percent, and 7.21 percent cut in their share prices respectively.

On the volume index, Abbey Mortgage Bank traded 137.411 million shares valued at N343.03 million in 37 deals followed by Guaranty Trust Holding Company (GTCO) with 33.445 million shares worth N1.55 billion traded by shareholders in 575 deals.

Access Holding traded 32.261 million shares valued at N728.09 million in 147 deals.

On the value index, GTCO recorded the highest value for the day, trading equities worth N1.55 billion in 575 deals followed by MTN Nigeria which traded stocks worth N903 million in 391 deals.

Access Corp traded stocks worth N728 million in 147 deals.

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