For the half-year (H1) period that concluded on June 30, 2022, Nigerian Breweries (NB) Plc reported revenue of $274.03 billion and profit after tax (PAT) of $19.08 billion.
When compared to the $209.22 billion reported during the same period in 2021, the company’s revenue increased by 31%.
The PAT increased by 142.8%, from $7.86 billion to $19.08 billion, according to the figures. Similar to this, basic earnings per share in 2022 were 237 kobo as opposed to 97 kobo in the same period in 2021.
In a statement signed by Uaboi Agbebaku, the company secretary and legal director, the profit gain was primarily attributed to top-line growth brought on by the pricing strategy and improved mix.
A deeper review of the data showed that from H1 2021 to H1 2022, the Cost of Sales grew by 18.3%, from N131.34 billion to N155.35 billion.
Additionally, costs for marketing, distribution, and administration increased by 44.6%, from N58.42 billion in 2021 to N84.45 billion in 2022, as a result of an increase in commercial activity following COVID, an increase in diesel prices, and higher wages as a result of the collective bargaining agreement.
The business also pointed out that even while interest costs were lower, net financing costs were greater due to foreign exchange losses brought on by a higher cost of fulfilling foreign obligations to international partners.
Even in the face of an extremely difficult operating climate, our business manages to maintain pace and provide constant profitable growth.
He said, “Our portfolio of best-in-class brands offers a distinctive platform that positions us well to dominate and grow the beer and malt sector and deliver better long-term wealth generation.
In order to maintain a robust balance sheet while responding quickly to operational issues related to the economy, the company told stakeholders that it would regularly assess its financial situation and business performance.