Nigerian Breweries sustains momentum as half-year profit surge 24%

Nigerian Breweries Plc, said on Friday that the benefits of the price increases it took in 2016 to mitigate the effects of skyrocketing inflation and foreign currency challenges continued into its first-half results.

The company declared a 15% growth in revenue for the first six months of its financial year. Sales grew to N181bn ($500m), from N157bn ($430m) from the previous year.

However, higher input costs contributed to a 28% increase in overall cost and expenses, which were the result of double-digit inflation and a challenging operating environment.

The brewer notes that its continued focus on productivity efficiencies as well as one-off ‘Other income’ and a lower net finance charge in the period boosted profits 24.4% to N23.8bn ($65.7m), from N19bn ($52.4m) in 2016.

NB warns that the operating environment remains challenging; however, it was confident its management is positioned to deliver good returns barring any unforeseen circumstances.

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