Nigeria Breweries, Nigeria’s largest brewer just released its Q2 revenue result posting NGN79 billion revenue for the group.
This is a fall of -3.3% compared to NGN81,7 billion the group declared within the quarter last year. Perhaps as a result of Nigeria’s rising cost of doing the business, the companies cost sales still edge out its last year figure to NGN43,1 billion compared to NGN41,4 billion spent for the same purpose last year.
In its Q2 revenue, Nigeria Breweries is also looking at cutting cost for administrative puposes. The company has cut the item down to NGN5,3 billion compared to NGN6,5 billion incurred last year.
In recent times, Nigerian Breweries has tapered its marketing spend especially on Above the line advertising media. The company has pushed more effort on sales and trade marketing, juggling its weighting across over 40 brands currently on its stable. Its sales and marketing expenditure shrank further to NGN15,5 billion to NGN16,3 billion.
Accross all its product lines, the group spent NGN10,1 billion, a slightly lower weighting compared to NGN10,8 billion spent within the same period last year.
Although a positive result, overall net profit fell by -23% to NGN8,6 billion compared to NGN11,3 billion declared within the same quarter last year.
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 the 16th November 1946, under the name, Nigerian Brewery Limited. The name was changed on 7th January 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% interest in the equity of Nigerian Breweries Plc. The address of the Company’s registered office in Lagos. The result represents its condensed interim financial statements of the Company for the six-month period ended 30th June, 2016 comprise the Company and its subsidiaries.