Nigerian breweries plc fy 2019 audited result better days ahead

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Nigerian Breweries Plc (NB) is one of the largest brewing companies in Nigeria, and its FY 2019 audited results are a great indicator of the company's performance. Here's a summary of the results:

Financial Highlights:

  1. Revenue: N344.4 billion (approximately $944 million USD), a 4.4% increase from FY 2018.
  2. Profit Before Tax (PBT): N64.4 billion (approximately $177 million USD), a 14.1% increase from FY 2018.
  3. Profit After Tax (PAT): N51.4 billion (approximately $143 million USD), a 15.1% increase from FY 2018.
  4. Earnings Per Share (EPS): N4.35, a 15.1% increase from FY 2018.
  5. Dividend Per Share: N2.50, a 10% increase from FY 2018.

Operational Highlights:

  1. Volume Sales: 1.34 billion liters, a 4.3% increase from FY 2018.
  2. Market Share: 34.4%, a 1.1% increase from FY 2018.
  3. Export Volume: 12.1 million liters, a 14.5% increase from FY 2018.

Key Drivers:

  1. Strong Demand: The company benefited from strong demand for its products, driven by growth in the Nigerian economy and increasing consumer spending power.
  2. Efficiency Gains: NB achieved significant cost savings through its efficiency initiatives, which helped to improve profitability.
  3. Investment in Capacity: The company invested in expanding its capacity, which enabled it to meet growing demand and improve its market share.

Challenges:

  1. Macroeconomic Uncertainty: The company faced challenges from macroeconomic uncertainty, including inflation, currency fluctuations, and regulatory changes.
  2. Competition: The brewing industry in Nigeria is highly competitive, with several local and international players vying for market share.

Outlook:

The company's management is optimistic about its future prospects, citing the following factors:

  1. Growth in Demand: The company expects demand for its products to continue growing, driven by increasing consumer spending power and population growth.
  2. Investment in Capacity: The company plans to continue investing in expanding its capacity, which will enable it to meet growing demand and improve its market share.
  3. Diversification: The company is exploring opportunities to diversify its product portfolio and expand its presence in the Nigerian market.

Overall, Nigerian Breweries Plc's FY 2019 audited results indicate a strong performance, driven by strong demand, efficiency gains, and investment in capacity. While the company faces challenges from macroeconomic uncertainty and competition, its management is optimistic about its future prospects and plans to continue investing in growth initiatives.