INVESTMENT HIGHLIGHT
Nigerian Breweries Plc (“The
Company” or “NB”) released its Q3 2015 un-audited statement of comprehensive
income for the nine months ended September 30 2015 on October 21 2015. YoY, the
company recorded a 10.36% hike in turnover, however, this was eroded by the
growths in distribution/administrative expenses and finance cost. PAT
consequently shed 12.24% YoY.
The surge in administrative cost is expected
given the toughened macro-economic environment during the quarter under review.
Similarly, finance cost grew as a result of the NB’s expanding financial
liabilities which was channeled towards its acquisition and merger of
consolidated breweries. Following this investment it became imperative for NB
to further invest in the quality of products it acquired from the deal. The Benue
Brewery was hugely invested in to facilitate the re-branding of the ‘More Lager
Beer’ and generate added value for the brand.
A Q3 YoY analysis of the
company’s result highlights a 10.36% growth in turnover to N214.9bn ($1.07ml) from
N194.7bn ($97ml) while PBT was down by 11.79% to N37.562bn ($185ml) from N42.583bn
($21ml). Moreso, PAT plummeted by 12.24% to N26.18bn ($13ml) from N29.83bn
($149.15ml) YoY. The YoY dip in PAT is on the back of the growth in administrative
expenses accompanied by a significant 69.83% slid in other income. Furthermore,
the M&A which was concluded in 2014 resulted in the surge in finance cost
YoY.
Click link for full report
https://drive.google.com/file/d/0B7bfqve2E3QrNWNrbjNlWE84U3M/view?usp=sharing
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