International Breweries plc, the manufacturers of beer and beverage drinks, reported second quarter September revenue of N10.07bn, up 16.34 percent from the like quarter of (Q2) 2013.

The company was able to translate top line impressive to bottom line growth as profit after tax (PAT) surged by 24.92 percent to N1.36bn from N1.08 in the like quarter of 2013.

Earnings per share EPS increased by 24.24 percent to 41k in the review period compared to 33k the preceding year.

Analysts say the Nigeria brewer’s accelerated growth can be attributed to its acquisition by SAB Miller plc.

SAB Miller, the world’s second-largest brewer by volume, bought 72.9 percent of International Breweries last year, since then capacity at the Ilesha, Nigeria-based brewery has been expanded 30 percent, according to the company.

The Nigeria beer industry has been bedevilled by challenges huge finance cost, weaker than expected consumer spending and the entrant of a competitor.

Industry analysts project beer volumes to increase at a compound annual growth rate (CAGR) of 23.45 percent between 2011 and 2014 and reach 23 million hectolitres by 2015.

Of the Nigeria brewers quoted on the floor of the exchange, INTBREW is the best performer in terms of revenue and profit growth.

The company has a better management of direct costs attributable to projects as gross profits were up by 18.06 percent to N5bn compared to N4.26bn the preceding year.

Gross and net margin remained flattish at 50 percent and 13 percent respectively.

There are opportunities for the company to consolidate its position in the market as the Nigeria rising population and burgeoning middle class will spur growth of firms in the brewery Industry.

Current ratio, which measures the ability of a firm to meet its short term obligation, was 1.19x which is below the industry average of 1.16x.

Total borrowings increased by 26.57 percent to N7.43bn in the review period compared to N5.87bn the like period of 2013 while the proportion of debt in the capital structure of the firm increased as debt to equity ratio jumped to 64.16 percent in Q2 2014 as against 56.87 percent last year.

For the six months period ended 30 September 2014, INTBREW’s total assets were up by 21.65 percent to N27.75bn compared to N22.81bn.

The company share price closed at N29.50 on the floor of the NSE while the market capitalisation was N96.24bn.

November 17, 2014;