Nigerian Breweries declares N10.72bn loss in Q1 2023

Nigerian Breweries Plc in its first quarter report for the period ended 31 March 2023, reported a turnover of N123.31 billion. This represents a decline of 10.49% from N137.77 billion reported in Q1 2022.

Loss after tax of N10.72 billion was reported for the 3 months period as against the N13.61 billion profit achieved the previous year.

The Earnings per share of the Group stands at -N1.04.

At the share price of N36.5, the P/E ratio of Nigerian Breweries stands at -35x with earnings yield of -2.86%.

Commenting on the Q1 2023 result, Nigerian Breweries stated thus:

The operating environment during the period under review was very challenging for businesses. The impact of the cash crunch which led to a near collapse of payment channels as well as the security and safety uncertainties associated with the general elections, created disruptions in the economy. These were in addition to the continuing headwinds of inflationary pressure with its impact on purchasing power, input cost, and operating expenses.

The total brewed product market suffered a double-digit (mid-twenties) volume decline versus the same period in 2022. We were able to largely mitigate the volume decline impact on our Revenue due to our appropriate pricing strategy. Our Operating Profit was further impacted by a one-off reorganisation cost with a view to refreshing and restructuring the business to cope with current challenges for a sustainable future.

The Board remains committed to creating long-term and sustainable value for our Shareholders.

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