Nigeria Breweries Plc makers of Star Larger Beer and Maltina among others witnessed sharp decline across all its key indicators for the period ended June 30, 2016. For instance the company recorded 11.23 percent drop in its profit after tax for to N19,066 billion which is below N21,477 billion that was posted same period in 2015.
Profit before tax for the period under consideration went down by 17.56 percent to N25,548 billion in 2016 against N30,989 billion that was declared same period in 2015. While revenue went up by 3.76 percent to N157,373 billion which is above N151,673 billion recorded same period in 2015.
Cost of sales was up by 7.67 percent to N83,391 million above N77,448 million in 2015, finance cost stood at N8,643 million above N3,436 million in 2015 an increase of 151 percent. Nigeria Breweries is a key competitor to Guinness Nigeria PLC, The Company is almost three times bigger than Guinness in terms of operations and earnings base.
However macro-economic challenges, stiff competition from non-beer alcoholic category, changing consumer taste across regions where its operation are well-entrenched has cut sales for the beer and malt drink category, its key focus.
Nigerian Breweries Plc, a public Company quoted on the Nigerian Stock Exchange, was incorporated in Nigeria on November 16, 1946, under the name, Nigerian Brewery Limited.
The name was changed on January 7, 1957, to Nigerian Breweries Limited and thereafter to Nigerian Breweries Plc in 1990 when the Companies and Allied Matters Act of that year came into effect. The Company is a subsidiary of Heineken N.V. a company domiciled in the Netherlands, the latter having a 54.29 percent interest in the equity of Nigerian Breweries Plc.