Beer maker, Nigerian Breweries Plc, has reported a 58% contraction in its top line for the first of half of 2020 as turnover fell to N151.810 billion from N170.191 billion in the relative period of last year.
Its unaudited interim financial statements for the six months ended 30th June, 2020 published on the website of the Nigerian Stock Exchange (NSE) on Thursday revealed Profit Before Tax (PBT) dived from N19.737 billion to N8.406 billion.
Put differently, PBT recorded a negative growth of N10.971 billion or 56.6% between the periods.
Profit for the period similarly declined, moving to N5.663 billion from N13.297 billion, translating to a 12% decline.
Nigerian Breweries’ high finance costs in the second quarter, when the economy was largely under the coronavirus lockdown, accounted for 61.2% or N4.189 billion of the total N6.864 billion it spent servicing debt in the first half of this year.
Consequently, its cost of servicing debt is more at half year 2020, when it did less business than that of the same period in 2019, when it more by N1.577 billion or about 30%.
Earnings Per Share (EPS) (basic and diluted) declined from N1.66 to N0.77, equivalent to a 57.2% drop.
The firm’s outstanding shares approach 7.997 billion units with a market capitalisation of around N247.904 billion, making it Nigeria’s biggest brewer by market value.
Its EPS is N1.05 while its price to earnings ratio is 29.56 according to Bloomberg.
Nigerian Breweries, in which Netherlands’ Heineken Brouwerijen B.V and Distilled Trading International B.V. wield controlling stakes of 37.6% and 15.47% respectively, was incorporated in Nigeria in 1946 as the country’s pioneer brewer.
Join the conversation
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.
FEATURES: Rise in Monkeypox infection troubling Nigeria’s rural population
In this features, KELECHUKWU IRUOMA goes into the rural communities of Bayelsa State, south-south Nigeria to uncover the plight of...
SPECIAL REPORT: Kwara communities groan as erosion washes away roads, property
For a number of years communities in Ilorin South LGA of Kwara State have had to live with the menace...
SPECIAL REPORT: Lack of legal provisions, cultural sentiments fueling marital r*pe in Nigeria
By Arinze Chijioke In the early days of Sandra Izuckukwu’s marriage in 2019, her husband, Sunday Izuchukwu, did everything she...
INVESTIGATION… LIVES ON THE LINE (IV): Surviving in a dangerous media environment
This investigation is on the unresolved killing of three Nigerian journalists while on assignments between 2019 and 2020. For six...
INVESTIGATION… LIVES ON THE LINE (III): Precious Owolabi was killed covering a protest
This investigation is on the unresolved killing of three Nigerian journalists while on assignments between 2019-2020. For six months, Nigerian...