Nigerian Breweries Limited halves its Profit After Tax in 2020 earning US$19.32m

NIGERIA – Nigerian Breweries Plc has recorded a net revenue of N337.046 billion (US$884.05m) in the year ended 31 December 2020, a 4.3% rise from N323.007 billion (US$847.23m) in 2019.

According to the brewing company, its cost of sale rose from N191.757 billion (US$502.9m) to N218.355 billion (US$572.7m).

However, it was able to bring down marketing and distribution expenses to N70.702 billion (US$185.4m) in 2020, from N77.695 billion (US$203.79m) in 2019.

Also, administrative expenses reduced marginally from N19.355 billion (US$50.76m) to N19.212 billion (US$50.39m) while net financing cost rose 52 per cent to N18.028 billion (US$47.28m) from N11.927 billion (US$31.28m).

Consequently, profit before tax (PBT) fell by 50.3 per cent from N23.327 billion (US$61.18m) to N11.577 billion (US$30.36m), while profit after tax (PAT) fell from N16.105 billion (US$42.24m) to N7.368 billion (US$19.32m), a 53.3% decline.

During the period under-review, Nigerian Breweries opened its newly built N5.1 billion (US$13.3m) ultra-modern automated PET line at the Ijebu Ode brewery, Ogun State.

Nigeria Breweries profit before tax (PBT) in 2020 fell by 50.3 per cent from US$61.18m to US$30.36m

The facility is fully automated to meet world-class safety and quality requirements and has the capacity to produce 24,000 bottles of drinks per hour.

It is also expected to become a central supply and a critical enabler to the company’s plans to export its drinks outside its home base to West Africa and beyond.

The line will increase the production capacity of Maltina and other variants, satisfying the refreshment needs of millions of consumers in the region.

Meanwhile, its competitor International Breweries Plc has launched a new campaign tagged ‘Aha Gi Efula’ (may your name never be forgotten), in honour of cultural heritage.

It said the campaign emphasised the importance of one’s name, personal identity, and leaving a legacy.

Speaking during the launch, the Marketing Director, International Breweries Plc, Tolulope Adedeji, explained that as a brand rooted in culture, Hero lager hoped to inspire consumers to aspire for success and strive to leave lasting legacies.

“Our core consumers embody the values of Hero, which include bravery, persistence, hard work, and purpose, and the relevance of these qualities are what the Aha Gi Efula campaign underscores.

“The nationwide campaign seeks to inspire Hero’s teeming consumers to aspire to great heights and in doing so, etch their names in the memory of humanity. It is premised on the belief that a name holds intrinsic value and embodies a person’s identity,” Adedeji said.

On her part, the Marketing Manager of the brand, Margaret Igabali, said Hero was going one step further to spur Nigerians to not just dream and envision a brighter future but to work assiduously towards it in the belief that their name will never be forgotten.

Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE

More News Articles

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.