Investors of Nigerian Breweries lose N27bn in a trading day
Nigerian breweries on Thursday reported the Sustained sell pressure which witnessed shares of some blue-chip firms quoted on the Nigerian Exchange has resulted in shareholders of Nigerian Breweries Plc losing about N26.717 billion in a trading day.
The result showed that the brewery stock dropped by 6.13 per cent to N49.75 per share from N53.00 the previous day.
Further analysis showed Nigerian Breweries closed trading yesterday at N49.75 per share and N408.990.07 billion in market capitalisation on the Nigerian Stock Exchange (NGX) as against N53.00 per share and N435,708.01 billion in market capitalisation the previous day, hence earned a loss of N26.717 billion or 6.13 per cent.
Nigerian Breweries began the year with a share price of N50.00 but has since lost 0.5 per cent off that price valuation, ranking it 104th on the NGX in terms of year-to-date performance. Shareholders’ worries are compounded by the fact that NB has lost 22 per cent of the stock’s value from June 20th to date.
The relentless sale pressure especially by Foreign Portfolio Investors (FPIs) is on the back of high commodity inflation that happened due to the Russian-Ukraine war, which led to a spike in interest rates and, in turn, led to a jump in bond yields in the US and other developed markets.
Nigerian Breweries’ first quarter of the 2022 financial year showed a N137.75 billion as net revenue.
According to the unaudited report and provisional results filed at the Nigerian Stock Exchange for the period ended March 31, 2022, the company also declared a Profit After Tax (PAT) of N13.774 billion, a 78.3 per cent rise compared to the N7.73 billion recorded for the corresponding period in the previous year.
A breakdown of the results shows that the N137.75 billion net revenue for Q1’22 financial statement is a 30.4 per cent increase from N105.66 billion recorded in the corresponding period in 2021.
Cost of sales increased slightly by 14.1 per cent from N66.01billion in 2021 to N75.32 billion in the period under review, while marketing, distribution, and administration expenses also grew significantly by 54.7 per cent from N25.45 billion in 2021 to N39.38 billion in 2022.
In his remarks, the Company Secretary/Legal Director, Nigerian Breweries Plc, Uaboi Agbebaku, noted that the company remains committed to continuously delivering value for its shareholders by remaining sustainable and profitable amidst the challenging operating environment and challenges in the Nigerian economy.
“This positive performance has proven the ability of the board and management to navigate Nigeria’s business landscape in the best interest of the shareholders despite the inherent challenges.
