capital market

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

Published

2 years ago

September 20, 2022

NewsDirect

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.

capital market

Bearish trend halted as investors gain N70.87bn

Published

20 hours ago

April 23, 2024

NewsDirect

Investors in the Nigerian equities heaved a sigh of relief as the losing streak on the bourse was halted on Monday, April 22, 2024 as investors recorded a profit of N70bn at the end of trading.

This followed the boom in the share value of stocks like Japaul Gold, GTCO, FTN Cocoa, Universal Insurance Company and RT Briscoe amongst others on the trading floor today.

After five hours of trading at the capital market, the equity capitalization increased to N56.367 trillion from N56.296 trillion posted by the bourse on Friday, last week.

Similarly, the All-Share Index (ASI) grew to 99,665.05 from 99,539.75 achieved by the bourse the previous day.

The market breadth was negative 16 stocks advanced, 18 stocks declined, while 85 stocks remained unchanged in 8, 298 deals.

Japaul Gold and Ventures Plc led other gainers with 9.58 percent growth to close at N1.83 from its previous price of N1.67, Guaranty Trust Holding Company (GTCO), FTN Cocoa Processors, and Universal Insurance Plc are amongst other gainers that also grew their share prices by 9.55 percent, 8.76 percent, and 8.57 percent respectively.

On the flip side, The Initiate Plc led other price decliners as it shed 10% off its share price to close at N1.80 from its previous close of N2.00. Prestige Assurance, Omatek Ventures, and VitaFoam Nigeria Plc are amongst other losers that also shed their share prices by 9.84 percent, 9.52 percent, and 9.26 percent respectively.

On the volume index, Guaranty Trust Holding Company (GTCO) Plc traded 50.158 million units of its shares in 630 deals, valued at N1.1774 billion followed by Access Holdings Plc which traded 48.067 million units of its shares in 951 deals, valued at N815.925 million and United Bank for Africa (UBA) Plc which traded 41.746 million units of its shares in 776 deals, valued at N956.455 million.

On the value index, GTCO recorded the highest value for the day trading stocks worth N1.773bn in 630 deals followed by UBA which traded equities worth N956bn in 776 deals and ACCESSCORP which traded equities worth N815m in 951 deals.

capital market

Transcorp Power Plc grows PBT by 775% in Q1 2024

Published

2 days ago

April 22, 2024

NewsDirect

Transcorp Power Plc (Transcorp Power), one of the electricity generating subsidiaries of Nigeria’s leading, listed conglomerate, Transnational Corporation Plc (Transcorp Group), has demonstrated impressive financial performance in its released Q1 2024 unaudited financial statements, for the period ended March 31, 2024.

The Company recorded N67.86 billion in gross earnings, compared to N21.04 billion reported in Q1 2023, reflecting a significant increase of 223 percent.

The strong performance is further demonstration of the Company’s strategic focus and effective execution, as part of Transcorp Group’s implementation of its integrated power strategy.

Commenting on the financial highlights, Evans Okpogoro, the Chief Financial Officer said, “The Q1 2024 results saw a gross margin of 51 percent, a cost to income ratio of 70 percent and net profit margin of 30 percent compared to Q1 2023 gross margin of 37 percent, cost to income ratio of 87 percent and net profit margin of 13 percent.

“This highlights the remarkable operational efficiency gains of the Company. Transcorp Power has continued to grow its revenue aggressively and consistently over the last five years. We expect that by year end 2024, we will see a similar growth trajectory recorded between FY 2022 and FY 2023.”

Transcorp Power MD/CEO, Peter Ikenga, commented on the results, saying, “We are pleased to report further robust financial performance, despite sectoral challenges such as gas supply issues and macroeconomic challenges. Our ability to sustain growth amidst this environment shows the resilience of our business model and the efficient execution of our strategic initiatives.

“We remain committed to leveraging our strengths to capitalise on emerging opportunities, drive sustainable growth and provide superior value to all our stakeholders.

“We will continue to prioritise ingenuity, operational excellence, corporate governance, and stakeholder engagement, to deliver superior value for our long-term growth,” he added.

capital market

Investors end week’s trading with N173bn loss

Published

2 days ago

April 22, 2024

NewsDirect

Investors in the Nigerian equities market ended the week’s trading with a N173 billion loss on Friday.

This followed the slump in the share value of Unity Bank, FBNH, Tantalizer, and Deap Capital Management & Trust, amongst others on the trading floor today.

After five hours of trading at the capital market, the equity capitalisation crashed to N56.2 trillion from N56.4 trillion posted by the bourse on Thursday.

Similarly, the All-Share Index (ASI) fell to 99,539.75 from 99,845.91 achieved by the bourse the previous day.

The market breadth was negative as 14 stocks advanced, 19 declined while 87 others remained unchanged in 7,168 deals.

FTN Cocoa Processors led other gainers with 9.60 percent growth in share price to close at N1.37 from its previous N1.25 per share.

R.T. Briscoe, Livestock Feeds, and Royal Exchange also raised their share prices by 9.26 percent, 9.02 percent, and 8.06 percent respectively.

On the flip side, Unity Bank led other price decliners as it shed 10 percent off its share price to close at N1.62 from the previous N1.80 per share.

Tantalizers, Deap Capital, and Caverton Offshore equally shed their share prices by 8.57 percent, 7.35 percent, and 6.83 percent respectively.

On the volume index, United Bank for Africa (UBA) traded 38.715 million shares valued at N880.5 million in 687 deals followed by Guaranty Trust Holding Company (GTCO) which traded 38.296 million shares worth N1.31 billion in 629 deals.

Access Holdings traded 34.339 million shares valued at N584.5 million in 660 deals.

On the value index, banking stocks led the way again as GTCO recorded the highest value for the day, trading stocks worth N1.31 billion in 629 deals followed by UBA which traded stocks worth N880 million in 687 deals.

Zenith Bank traded equities worth N875 million in 622 deals.