Heineken N.V’s unit in Nigeria, Nigerian breweries is reporting a significant increase in its first quarter earning for the year 2017.
Total revenue for the quarter rose to NGN91 billion compared to NGN77 billion disclosed within the same period last year.
Cost of sale for the group rose by 25% to NGN50 billion compared to NGN40 billion in the previous year. The group margin saw much pressure from inflation, cost of funds and Forex costs.
Much more pressure was put into marketing and distribution which gulped NGN16 billion within the quarter compared to NGN14 billion expended within the same quarter last year.
Nigerian Breweries is expected to spend more on marketing in the coming quarter as the competition in the market will further get tougher as Guinness, Diageo’s unit strive to stabilise its business.
Internal cost cutting measures saw administrative down to NGN5 billion compared to NGN5.5 billion in the previous year.
Net profit for the period rose to NGN11 billion from NGN10 billion in the same quarter last year.
The group did cut down its liabilities down to NGN196 billion from NGN201 billion in the previous year. This will be a good news to the company’s shareholders in the face of ballooning liabilities in the books of companies across the sector.
A corresponding growth in asset value was recorded as NGN373 billion from NGN367 in 2015.
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