Nigerian Breweries Plc has reported a further decline in earnings for the first nine months of its financial year. Profits fell by 17% to N12.3bn from N14.8bn in the previous year. It would be the seventh consecutive quarter that the company’s profit has declined.

The drop in profits was driven by the new excise duty rate that came into effect on 4 June 2018. The company said it paid N24.2bn in excise duty in the nine months to the end of September, a 43% increase from the previous year. Net revenue in nine months declined marginally by 1% to N236bn from N238bn.

Competition in the lager segment also impacted the brewer’s earnings.

Also, net finance cost rose by 51% in the nine months to N7.9bn, accelerating by 142% in Q3 by N2.9bn.

The company declared a loss of N1.043bn in the third quarter, driven by the higher excise duty rate which rose by 31% in Q3 as well as the net finance cost.

The firm said it will pay an interim dividend of 50 kobo per ordinary share of 50 kobo each to its shareholders subject to tax withholding.