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.
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.
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