Nigerian Breweries Plc, the foremost brewing company in Nigeria, has announced a revenue of N393.336 billion for the Third Quarter (nine months) that ended 30th September 2022.
The figure represents an increase of 27.2 % from N309.22 billion recorded in the corresponding period in 2021.
In a statement signed by Uaboi Agbebaku, the Company Secretary/Legal Director, Nigerian Breweries Plc, revenue growth in the quarter driven by pricing was, however, offset by higher input costs arising from increased inflation rate and higher energy costs.
Analysis of the results revealed that the cost of sales rose significantly by 20.2% from N198.75 billion in 2021 to N238.92 billion during the period under review in 2022. Marketing, Distribution, and Administration expenses also grew by 40.1% from N86.33 billion in 2021 to N120.95 Billon in 2022.
Apart from volume and cost challenges which negatively affected business performance in Q3,2022, there was increased pressure on consumer disposable income and heavy rains and flooding. Nevertheless, the Company performed relatively well in the period led by a strong premium portfolio of Heineken®, Tiger and Desperados.
Despite the volume and cost challenges in the third quarter, the strong performance recorded in the year’s first half ensured that Operating Profit grew by 44% while Profit after Tax went up 80%.
The Board has therefore announced an interim dividend of N3.29 billion payable to shareholders at 40kobo each per ordinary share of 50k.
While being cautious about the development of input costs and consumer demand in the remaining period of 2022, the statement assured stakeholders that the Company is well-positioned to take advantage of any upswing in the market and maintain its leadership.