Friday, February 22, 2013 / TheAnalyst / Cordros / NSE
Nigerian Breweries Plc (NB) has announced its FY'12 results. Turnover grew by 20% while PAT slowed by 0.02%. A dividend of N3.00 was declared; translating to a yield of 1.76% on a payout ratio of 60%. Highlights of the results are as follows:
1. Increased revenue driven by Volume Growth and consolidation: NB posted a turnover of N252.674 billion, up 19.71% from N211.071 billion in FY11. In our view, this growth may have been underpinned by contributions from the consolidation of its acquired breweries in Q4’12 as well as stronger volumes.
2. Margins and profitability pressured by costs and higher finance charges: PBT margin dipped to 22.01% in the FY12 from 26.72% in FY11. PAT margin also fell to 15.06% in FY12. We note that increased marketing spend and input costs will have been responsible for apparent pressure on margins. Higher finance charges also impacted attributable earnings as earnings per share came in flat at N5.03 in FY ’12 when compared to FY11 EPS.
3. 2013 Outlook: While economic headwinds may continue to impede growth in the short term, we believe near term favourable economic environment and potential increase in consumer demand will improve NB’s operating profit and underlying earnings per share.