Price increases, cost efficiencies help lift Nigerian Breweries first quarter result
Nigerian Breweries Plc hailed a strong first quarter as price increases of its products and cost efficiencies it implemented helped the brewer start the year on a strong footing as sales climbed 18% to N91bn, and net profit surged nearly 10% to N11.4bn, from N10.4bn a year earlier.
Nigeria’s largest brewer which has been battling the effects of a lingering recession appears to have the worse behind it. The firm said that its net finance charges, which have been a cause of concern in previous quarters, dropped a whopping 41% to N1.76bn, from N2.9bn helping lift net profit.
The maker of Star Lager, Gulder and others acknowledged in a statement the impact of price increases implemented in the previous year and the cost efficiencies it put in place for helping bring about a turnaround.
It also notes that cost of goods sold rose 25% in the period reflecting higher input costs.
The brewer further said that the 2017 operating environment however remained challenging. The Board, it said is confident that the Company is in a good position to make the necessary adjustments to cope with the difficult operating environment. Thus, the Company will continue to pursue its twin-strategy of Cost Leadership and Market Leadership supported by innovation.