Wednesday, October 21, 2015 08.05 PM / Cordros Capital
Nigerian Breweries Plc (NB) released results for nine months ended 30th September 2015 today.
For the nine months period, revenue grew by 10.4% y/y while pre and post-tax profits respectively declined by 11.8% y/y and 12.2% y/y.
Increases in operating expenses and net finance charges (especially) weighed on earnings in the review period.
The Board has proposed an interim dividend of N1.20, 5kobo less than last year's interim.
A significant reduction in LT borrowings - resulting in 74% expansion in net finance charges – as well as aggressive RTM campaign – shooting up distribution/admin expenses by c.40% y/y – more than offset a 16.2% y/y growth in gross profit recorded in Q3-15.
Compared to Q2-15, the Q3-15 result significantly underperformed.
3. NB Upgrading to neutral on marked sell-off – Aug 26, 2015