The Nigerian Breweries Plc (NB) has recorded N151.810 billion revenue in H1 2020 lower than N170.191 billion it reported in the same period in 2019 with a Profit after tax of N5.589 billion down from N13.318 billion posted in 2019. The company’s Basic Earnings per share stood at 66kobo during the period in review.
According to the Unaudited Condensed Interim Financial Statements for the six months ended 30th June, 2020 recently released by the company, its revenue dropped by 10.80% while profit after tax nosedived by 58.03% in the first half of the year. Its cost of sales – N92.668 billion represented 61.04% of the revenue. Thus the company registered a gross profit of N59.141 with a gross profit margin of 38.84%.
Meanwhile, Marketing and Distribution Expenses of N34.336 billion alone gulped 58.06% of the gross profit. Other expenses include administrative expenses – N10.093 billion, finance cost – N6.824 billion, income tax expense – N2.756 billion.
In the second Quarter of the year (April to June), revenue dropped by 21.01% to N68.651 billion from N86.913 billion in Q2 2019. Whereas profit after tax dipped by 98.42% to N83.913 million in Q2 2020 from N5.298 billion reported in Q2 2019.
Factors attributed to some of these declines include an increase in excise duty, a rise in inflation, an increase in VAT from five per cent to 7.5 per cent, as well as the impact of the Covid-19 pandemic on businesses worldwide.
NB noted that despite these challenges, the company’s financial position shows stability and sustained profitability. To support the fight against the Covid-19, the company, during the period under review, made various donations in cash and kind valued at about N531 million out of a phased commitment of N600 million to the federal and state governments’ Covid-19 Relief Funds.