Nigerian Breweries (NB) Plc has announced revenue of ₦274.03 billion and profit after tax (PAT) of ₦19.08 billion for the half-year (H1) period ended on June 30, 2022.
The company achieved 31 per cent growth in revenue compared to the ₦209.22 billion recorded in the corresponding period in 2021.
The results also showed that the PAT rose by 142.8 per cent, from ₦7.86 billion to ₦19.08 billion. Similarly, basic earnings per share in 2022 was 237 kobo as against 97 kobo that was recorded in the corresponding period in 2021.
According to a statement signed by the company secretary/legal director, Uaboi Agbebaku, the 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.
Marketing, distribution and administrative expenses also rose by 44.6 per cent, from N58.42 billion in 2021 to N84.45 billion in 2022, driven by the increase in commercial activities post-COVID, rising diesel prices and higher wages due to the collective labour agreement.
The company also noted that although interest expenses were lower, the net finance cost was higher as a result of 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,” he stated.
The company, therefore, assured 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.