Nigerian Breweries profit plunges 58% to N5.58 bln H1
Nigerian Breweries plc, the local unit of Dutch brewing company Heineken N.V. has reported a sharp fall in its profit before tax (PBT) for the first six months of the year as the company profitability was impacted by the outbreak of coronavirus pandemic.
The brewer of Guilder recorded 57.03 percent drop in its PBT to N8.34 billion in the year to June 2020, compared with N19.41 billion posted in the previous period of last year, the company reported on Thursday.
In a regulatory filing posted on the website of the Nigerian Stock Exchange (NSE), the company said profit after tax also fell 58.07 percent to N5.58 billion against N13.31 billion previously.
Its gross earnings also decline to N151.81 billion at the end of June 2020 compared with N170.19 billion posted at the end of the second half of last year.
The company said the continued spread of the coronavirus pandemic impacted all businesses, noting that ‘the company’s priority remains protecting the health, safety and welfare of employees, customers and partners.”
According to the company; “At this stage, it is not possible to determine the financial impact of Covid-19 on the Company given the lack of visibility on the end date of the pandemic and its impact on the Nigerian economy.
“The Company regularly monitors and evaluates its financial position and performance in the light of the pandemic and would report thereon as may be appropriate,” the brewer said in the regulator filing.
The local unit of Heineken had in April raised N48 billion in Commercial Paper (CP) to support the company’s short terms funding needs.
Many beverages firms are expected to record decline in revenues and profits this year as a result of the impact of measures imposed by governments to contain the spread of covid-19 in the country.
Many hospitality businesses were shut down March by government in the major cities of Lagos and Abuja as part of measures to curb the spread of the dreaded disease while many of them are yet to reopen for business.
The restrictions in movement during the lockdown may have impacted sales of beverages across the line, with dire consequence of revenues of companies in the sector.