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NB Plc records growth in profit


September 26, 2005/Source The Punch



Nigerian Breweries Plc  released its financial performance for the half year ended June 30, 2005.

The company had disappointed many investors with 40 kobo dividend paid in respect of 2004. This made some investors to switch over to its closest rival, even at a higher price.

However, NB Plc has announced 125 per cent growth in gross profit for the half year, while turnover rose by 11 per cent. The company posted a turnover of N9.199billion, up from the N5.858billion posted in the corresponding period of 2004.

Gross profit rose from N3.157billion in 2004 to N7.44billin, while profit after tax grew by 125 per cent from N42.147billion to N4.837million.

In their comments sent to the NSE along with the result, the directors said, “The sustained restructuring projects that were executed to realign our operations to developments in the operating environment are beginning to yield positive effects as the result has shown.”

They said focused cash management has drastically reduced bank overdrafts and hence interest cost. The future outlook remains reasonably bright and this augurs well for the result of the second half of 2005.Consegqunetly, the result for 2005 should be better that year 2004, provided there are no major disruptions to our operating environment.”

The result impacted positively on the NB Plc ‘s equity price as it rose by 5.4 per cent of 187 kobo to close at N36.73 per share on Friday.

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