NIGERIA – Nigerian Breweries Plc (“NB”), the country’s largest brewer said on Thursday that sales for the nine-months to September ending grew 14% to N255bn ($700m).
In the same period in 2016, the firm recorded revenue of N223bn ($614m).
The company which is a unit of Amsterdam-based Heineken N.V. said that changing market dynamics resulted in increased costs and expenses.
The firm’s cost of sales jumped 18.1% in the nine months to September and 15.2% in the third quarter alone.
While the company’s overall net finance cost dropped 23%, it spiked 47% in the third quarter to N2.6bn ($7.1m) resulting in a 75% drop in third quarter profit.
Despite the challenges, the company’s nine months earnings grew 19.31% to N24bn ($66m), from N20bn ($55m) in the previous year.
NB noted that a continued focus on internal efficiencies under the Cost Leadership Programme led to improved Results from Operating Activities (Operating Profit), which combined with low net finance charges, resulted in increased profitability for the period.
The firm said that despite the challenging economic conditions, it remains confident to deliver a good return on investment for the remainder of the year barring any unforeseen circumstances.
Beverage Industry News NG