EARNINGS UPDATE: NB Plc Exhibited Negative Outing in Q1’2023.
Consumer Goods giant, Nigerian Breweries Plc exhibited a negative outing in Q1’23 as Profit After Tax (PAT) declined by -21.29% to N10.715bn from N13.613bn in the corresponding period of 2022. This is partly due to the company’s inability to upscale its revenue in the period. Total Revenue declined by -10.49% to N123.313bn from N137.771bn in Q1’22.
This is not an impressive performance, however, the economic conditions that played out in the period under review cannot be innocent.
Cash crunch, as a result, the Naira Redesign Policy of the Central Bank of Nigeria, affected consumer spending, especially in products and services they consider not primary, including Beer, which is the core product of the NB.
Although the Breweries Major exhibited prudence in managing the cost of financing its activities and projects by reducing Finance Costs by about 552.49%, income from its financial outlays contracted by -45.76%, stood at N39.872m from N73.514m in the same period of 2022. This dragged Profit Before Tax down by -16.02% to N17.437bn in Q1’23 when compared to N20.762bn recorded in Q1’22. Nevertheless, this may be seen as a spill-over from NB’s performance in 2022.
Profit After Tax in FY’22
When Nigerian Breweries closed its books for FY’22, Profit After Tax (PAT) went down by -5.30% to N13.186bn in FY’22 from N13.925bn in FY’21.
EPS Depreciated by -5.95% in FY’22 & -23.67% in Q1’23
As a result of the abysmal performance in PAT, in both FY’22 and Q1’23, the company’s Earnings Per Share declined by -5.95% & -23.67% to N158.00 from N168.00, and also to N129, respectively.
However, NB Plc proposed N1.03 full-year dividend in 2022.