RESULT HIGHLIGHT
Nigerian
Breweries Plc released its Q2 report for the period ended 30th June
2015. The company reported an impressive 7.19% increase in revenue compared to
the same period in the prior year, while profit after tax took an opposite
course plunging 10.02% which translated into a 14.18% decline in Basic Earnings
per Share from N3.16k in Q2 2014 to N2.71k in Q2 2015.
Retracting
the impact of rising revenues, cost of production as well as distribution/admin
expenses surged 14.79% and 2.82% respectively on the back of increasing costs
on importation of raw materials resulting from escalating foreign exchange
rates. Similarly, finance charges escalated 63.77% as the company’s current
financial liabilities surged 156.6% sending net income on a 10.02% nose dive.
The
company’s unimpressive performance was attributed to the fact that during this
period the company operated in a toughened economic environment which is
estimated to get even tougher, ridden by rising core inflation eating into
consumer’s disposable income and consequently shrinking demand as consumers
focus on satisfying their basic necessities.
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