Connect with us

Business

Marketing expenses, operational cost weigh on revenue of Nigerian Breweries

Published

on

Nigerian Breweries’ half-year profit falls by 58%, turnover by 12%

Nigerian Breweries reported a significant rise in revenue for the first quarter of this year, but marketing expenses and cost of sales is biting into the earnings of the alcohol manufacturer.

The brewery company generated N105.67 billion within three months of the first quarter in 2021, surpassing the N83.22 billion it grossed during the corresponding period of 2020.

The turnover rose by 26.9 percent year-on-year according to analysis of the company’s financial statements by Ripples Nigeria, but rising cost of marketing and distribution, including cost of production have been cutting into Nigerian Breweries revenue.

Read also: Nigerian Breweries, Ecobank, BOCGAS, Union Bank make Ripples Nigeria stocks-to-watch list

It was gathered that N19.8 billion was spent on marketing in three months of first quarter 2021, rising past the N18.79 billion that was infused into promotion of its products during the same period in 2020.

The company has also been struggling to keep cost of sales down, as it rose by 36.5 percent within January and March this year. Cost of production rose to N66 billion in 2021, settling above the N48.33 billion which was disbursed in 2020 Q1.

Although, rising cost of sales and marketing didn’t stop Nigerian Breweries‘ profit from rising during the period under review, as it grossed N39.67 billion profit in Q1 this year, surpassing the N34.89 billion recorded in Q1 2020.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now