The 2015 Financial Year End Audited Results of Nigerian Breweries Plc released to the market today shows that while revenue grew by 10% from N266,372,475 in 2014 to N293,905,795 in the year under review; after tax profit declined by same margin from N42,5 billion in 2014 to N38 billion in the year ended 31st December, 2015.
The decline in the level of profitability arose from a 16% increase in direct cost, 15% increase in indirect cost and a 43% increase in financial charge, resulting from an increase in borrowing from N7 billion in 2014 to about N34 billion in the year under review. Nigerian Breweries had in the past financial year raised a Commercial Paper for N17.7 billion which is currently being traded on FMDQ platform.
Earnings per share declined by 14 percent from N5.62 in the financial year ended 31st December 2014 to N4.82 in 2015 year end. Inspite the drop in earnings, the directors of NB Plc have recommended a Dividend of N3.60 per share to be paid to shareholders whose names are in the Register as at March 3, 2015 up to March 9, 2015 when the register of members will be closed. Payment date has been fixed for May 12, 2015 while the company will hold its AGM on the 11th of May at Shell Hall, Muson Centre, Onika, Lagos where the consent of Shareholders will be sort for the payment of the dividend.
|Cost of sales||(151,443,890)||(130,788,296)||16%|
|Profit Before Tax||54,514,973||61,461,821||-11%|
|Profit After Tax||38,056,123||42,520,253||-10%|
With an installed capacity of over 15.4 mhl/pa and continuous capacity improvement through mergers and acquisition accross the beer chain in Nigeria, NB Plc controls a market share of approximately 70% of the Nigerian beer market. Its rich portfolio comprise of high quality products most of which are market leaders in both the high and mid consumer group. Some of the products include Star Larger, Guilder Ultimate, Legend Extra South, Heinekan, Multina and Amstel Malta. Also in its product bouque are Fayrouz, Maltina Gold, Goldberg amongst others. It recently launch ACE Roots to compete in the emerging herbal bitter drink segment of the market.
The N3.60 per share dividend translates to a dividend yield of 4% at its current price. This gives attractive return given the prevailing returns in the money money market. Currently trading at N97 per share, Nigerian Breweries is highly discounted.