…NB recorded a lower pre-tax loss of N50.76 billion in Q2-24 (Q2-23: N50.41 billion).
…Following a N17.65 billion tax credit in the period (+30.5% y/y), the loss after tax settled at N33.11 billion (Q2-23: N36.88 billion)
WED JULY 31 2024-theGBJournal| Nigerian Breweries Plc (NB) reported a 63.4% y/y increase in revenue for Q2-24 (H1-24: +72.0% y/y), in its Q2-24 unaudited financials, driven by significant price increases (c. 35.0%) to counter inflationary pressures and currency weakness, along with innovation and volume growth.
Management reported strong expansion in its premium portfolio, with Desperados and Tiger leading the way, showing over 10.0% growth. In the non-alcoholic segment, Hi-Malt, Fayrouz and Maltina also saw single-digit growth. Quarterly revenue increased by 10.8%, reflecting the impact of higher pricing.
The results showed a lower loss per share of N3.21 (Q2-23: N4.44). However, for H1-24, the loss per share increased to N8.21 (H1-23: N5.70), impacted by ongoing cost pressures and foreign exchange losses.
Gross margin contracted by 135bps y/y to 30.9% in Q2-24 (Q2-23: 44.4%), due to elevated increase in cost of sales (+103.1% y/y) following the 118.0% y/y increase in raw materials and consumables.
As a result, EBITDA (-145bps y/y) and EBIT (-121bps y/y) margins declined to 10.4% and 5.1%, respectively, amid a 51.9% y/y increase in OPEX.
Net finance cost declined by 17.3% y/y to N63.63 billion (Q2-23: N76.90 billion) driven by a 45.1% y/y decline in FX loss amid a 279.5% y/y increase in finance cost.
Overall, NB recorded a lower pre-tax loss of N50.76 billion in Q2-24 (Q2-23: N50.41 billion). Following a N17.65 billion tax credit in the period (+30.5% y/y), the loss after tax settled at N33.11 billion (Q2-23: N36.88 billion).
Meanwhile, the brewer is raising up to N600 billion through a rights issue in H2-24, which is expected to eliminate all debt (FX & local), thus positioning the company for a brighter outlook in the medium term.
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