Nigerian Breweries starts year with momentum as sales rise 11% in first quarter

Nigerian Breweries Plc (NB) said on Thursday its revenue grew by 11% for the three months ended 31st March 2016, climbing to N77.5bn, from N69.9bn recorded a year earlier.

The brewer of Star Lager, Gulder and Legend Extra Stout, among others has been facing economic headwinds following a slump in global oil prices which has led to a drop in consumer demand.

The company’s gross profit rose 9.92% for the quarter to N37.2bn, from N33.9bn a year earlier. Results from operating activities edged up 9.93% to N17.9bn, from N16.3bn.

Nigerian Breweries’ parent company, Heineken NV said in a statement: “It is becoming increasingly challenging to obtain hard currency in the market and the uncertainty regarding a possible devaluation of the Naira continues to impact the business adversely.”

However, Heineken noted that if it wasn’t for Nigeria, volumes in the region would have been down organically.

Nigerian Breweries reported a 3.5% rise in profit after tax to N10.5bn, from N10.1bn from the same period a year ago.

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