Nigerian Breweries Plc Q1’20 Unaudited Results – Increase in operating cost pressures earnings

Must Read

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...

List of First Bank of Nigeria Sort Codes in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...

List of United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...
- Advertisement -

CardinalStone Research

Nigeria Breweries Plc (NB) has announced a 31.4% YoY plunge in earnings to N5.5 billion in its Q1’20 unaudited results. The numbers suggest weaker cost efficiency and pressured operating cash flow.

Some concerns

  • NB reported a 22.4% YoY plunge in core operating earnings to N10.9 billion in Q1’20, following significant increases in marketing & distribution expense (+13.5% YoY) and administrative spend (+16.1% YoY). We believe the high marketing expense reflects increasing promotional intensity in the breweries market
  • The effective tax rate was also 3.5ppts higher YoY in the quarter
  • Cash generated from operations plunged by 61.9% YoY to N4.4 billion in Q1’20, largely reflecting weak working capital management. Notably, the company experienced significant expansions in changes in trade & other receivables and prepayment in the review period
  • Pressure on net operating cash flow was further compounded by a 24.0% YoY increase in Value Added Tax (VAT) in the quarter
Some positives
  • NB was able to keep revenue and cost of goods sold largely steady despite COVID-19 induced crisis in the latter part of the quarter. Specifically, Gross profit margin only contracted by 19bps YoY in Q1’20
  • Despite the over four-fold YoY jump in non-current borrowing, finance cost remained largely subdued (+1.5% YoY) in the review period. The overall moderation in yield environment and a cutback in short term borrowings may have reduced finance cost pressures for the business
Read Also:  Xiaomi Donates First Batch of Surgical Masks to Ogun State (Photos)

Nigerian Breweries Plc Q1'20 Unaudited Results - Increase in operating cost pressures earnings - Brand Spur

- Advertisement -

Please click here for the full result.

- Advertisement -
Nigerian Breweries Plc Q1'20 Unaudited Results - Increase in operating cost pressures earnings - Brand SpurNigerian Breweries Plc Q1'20 Unaudited Results - Increase in operating cost pressures earnings - Brand Spur
- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

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

Nigerian Breweries Plc Q1'20 Unaudited Results - Increase in operating cost pressures earnings - Brand SpurNigerian Breweries Plc Q1'20 Unaudited Results - Increase in operating cost pressures earnings - Brand Spur

Latest News

LafargeHolcim Proposes Reducing Company Name To Holcim

The world’s largest cement maker, LafargeHolcim is proposing to simplify its name to Holcim Limited, reverting to the name...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Nigerian Breweries Plc Q1'20 Unaudited Results - Increase in operating cost pressures earnings - Brand SpurNigerian Breweries Plc Q1'20 Unaudited Results - Increase in operating cost pressures earnings - Brand Spur