Tag Archives: Macro headwinds

Nigerian Breweries profit slumps 23% in 9-months amid challenging macroeconomic conditions

October 27, 2016   Editor   No comments

Nigerian Breweries Plc on Wednesday reported a 23% drop in profit to N20bn in the 9-months to September 30 2016, from N26bn it made in the previous year. It blamed the decline on skyrocketing net finance cost of 95% which shaved N10bn off the company’s operating profit compared to the N5.2bn it spent on finance cost in 2015.

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Seven-Up post 53% profit decline in full-year amid worsening economic environment, competition

July 01, 2016   Editor   No comments

Seven-Up Bottling Company Plc, said on Wednesday that net income for the fiscal-year ending March 31 2016 fell 53% to N3.34bn, from N7.12bn a year earlier.

The poor performance of the soft drink maker is attributable to the worsening economic environment in the country – low oil revenue, currency headwinds, inflation of 15.6% as of May 2016 compared to 9.2% a year earlier, which is the last time the company posted higher profits. Insurgency and terrorism in different parts of the country, competitive pressure, among others also weighed on the company’s profits.

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Consumer Confidence Index plummets on Macro-Economic headwinds

May 05, 2016   Editor   No comments

The economic turmoil in the country is having an adverse effect on the fortunes of many Fast-Moving Consumer Goods companies (FMCGs).

Nielsen Consumer Confidence Index, which is a key measure of the economic health of the country, has seen a significant drop in consumer confidence index in Nigeria due largely to weak macro-economic factors, rising inflation, weakened consumer income, all of which has affected the way consumers feel about the future.

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Diageo set to increase use of locally sourced raw materials in Nigeria to head-off headwinds

March 07, 2016   Editor   No comments

Diageo said it will increase its use of locally sourced raw materials in Nigeria in a bid to tackle current macro-economic challenges in the country.

Speaking to analyst during a conference call late last week, Diageo’s Africa President, John O’Keeffe, said he was “mindful of the short-term uncertainty” in Nigeria, which could lead to currency devaluation. Nigeria is facing one of its worst economic crisis in decades, with falling oil prices impacting everything from government revenue shortfalls to inflationary pressures and currency depreciation. The government has so far resisted pressures to devalue the naira.

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Challenging times for Nigerian Breweries as profits dip

February 18, 2015   Editor   No comments

Tough economic times in the country is slowing growth potential for Nigerian Breweries (NB)

The 2014 Financial Statements for the company showed a profit after tax (PAT) declined by 1.3 percent to N42.52bn, when compared to N43.08bn from the previous year (FY 2013). Sales also fell slightly by 0.8 percent to N266.37bn.

“We believe that the year-to-year decline on top-line was driven by a slow-down in beer demand arising from significant macro headwinds,” said Tunde Abidoye, Equity Analyst at FBN Capital.

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