NIGERIA – Heineken, the majority shareholder in Nigerian Breweries has increased its shareholding by 274, 542 shares despite the brewer experiencing challenges in growth due to low patronage of alcohol in Nigeria.
Heineken, according to information obtained from Nigeria Stock Exchange insider disclosures, bought the shares at an average price of N35.67.
Insider disclosures are reported on the Nigerian Stock Exchange as a regulatory requirement especially when it informs a major shareholder or director of a company purchasing shares in the company they own.
In a related development, Nigerian Breweries chairman Chief Kolawole Babalola Jamodu also purchased 10,000 units at N37 per unit.
Nigerian Breweries half year revenues for 2020 stood at N152 billion (US$ 393.56 million) a significant drop, compared to the N170 billion (US$ 440.17 million) recorded in the corresponding period of 2019.
According to a report seen by Premium Times Nigeria, the Company also made a N5.70 billion (US$ 14.76 million) Profit after tax in the period under review.
“The half-year results for the 2020 financial year show a strong balance sheet for the Company despite several factors that negatively impacted on the Company’s operations,” Nigeria Breweries said.
Some of the challenges highlighted by the brewer include “an increase in Excise Duty, a rise in inflation, an increase in VAT from 5 to 7.5 per cent, as well as the impact of the coronavirus (Covid-19) pandemic on businesses worldwide.”
The lockdown imposed by the Federal Government during the first half of the year was perhaps the most challenging factor for the company resulting in a 21% drop in sales.
Beer consumption in Nigeria is predominantly done via on-trade channels (particularly open-air bars), hence the movement restrictions were responsible for a double-digit decline in beer volumes for NB.
Nigerian Breweries Plc, is the pioneer and largest brewing company in Nigeria. It serves the Nigerian market and exports to other parts of West Africa.
Some of the alcoholic beverages produced by the brewer include: Star Lager, Gulder lager, Legend Extra Stout, and Heineken Lager.
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