NB records 27% revenue growth in Q3 2022 amid cost challenge

By Ibidunni Banjoko

The foremost brewing company in Nigeria, Nigerian Breweries Plc, has announced revenue of N393.336 billion for the third quarter that ended 30th September 2022. The figure represents an increase of 27.2 percent from N309.22 billion recorded in the corresponding period in 2021.

The Nigerian Breweries stated this in a statement signed by Uaboi Agbebaku, the Company Secretary/Legal Director, noted that revenue growth in the quarter was driven by pricing, and was offset by higher input costs arising from an increased rate of inflation and higher energy costs.

Analysis of the results revealed that the cost of sales rose significantly by 20.2 per cent 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 per cent, from N86.33 billion in 2021 to N120.95 billion in 2022.

Apart from volume and cost challenges that negatively affected business performance in Q3 of 2022, there was increased pressure on consumer disposable income as well as 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 first half of the year ensured that operating profit grew by 44 percent while Profit After Tax went up 80 percent. The Board has therefore announced an interim dividend of N3.29 billion payable to shareholders at 40kobo each per ordinary share of 50 kobo.

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 position.


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