Nigerian Brewers – NB Tops on EPS, GUINNESS Tops on PE Ratio As INTBREW Records Negative ROE

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Wednesday, March 13, 2019  07:15 PM /Proshare Research

 

In a recent review of a few ratios on three Nigerian brewers namely NB, GUINNESS and INTBREW, analysis revealed that NB topped on EPS with N2.45k, GUINNESS followed closely with N0.55k while INTBREW records a negative EPS of -N0.33k. 

GUINNESS, however, topped on PE Ratio, NB followed closely while INTBREW also recorded a negative PE Ratio. On ROE, GUINNESS recorded 0.01 while INTBREW records a negative ROE. 

NB and GUINNESS both recorded 5.55% and 2.97% PAT margin respectively while INTBREW recorded a negative PAT margin of -5.36% 

 

Company

Last Price

Change

% Change

Quarter

Year End

EPS

NB

75

0

0

Audited

31/12/2018

2.45

GUINNESS

64

-3.15

-4.69

Q1

30/09/2018

0.55

INTBREW

24.05

0

0

Q2

30/06/2018

-0.33

Source: NSE, Proshare MARKETS

Company

Last Price

Change

% Change

Quarter

Year End

PE Ratio

GUINNESS

64

-3.15

-4.69

Q1

30/09/2018

115.33

NB

75

0

0

Audited

31/12/2018

30.59

INTBREW

24.05

0

0

Q2

30/06/2018

-72.64

Source: NSE, Proshare MARKETS

Company

Last Price

Change

% Change

PAT (mln)

Net Assets (mln)

% ROE

GUINNESS

64

-3.15

-4.69

835.66

88,424.00

0.01

INTBREW

24.05

0

0

-2,846.00

39,530.00

-0.07

NB

75

0

0

19,438.00

0

0

Source: NSE, Proshare MARKETS

Company

Last Price

Change

% Change

PAT (mln)

Turnover (mln)

% PAT Margin

NB

75

0

0

19,438.00

350,226.00

5.55

GUINNESS

64

-3.15

-4.69

835.66

28,094.00

2.97

INTBREW

24.05

0

0

-2,846.00

53,110.00

-5.36

Source: NSE, Proshare MARKETS


The Headcount Analysis By Rennaisance Capital

According to a recent report on Nigerian Brewers authored by Adedayo Ayeni of Renaissance Capital, it stated that the Nigerian Brewery sector is facing a combination of the following challenges which have culminated in declining cash margins. They are;

  1. Slow volume growth,
  2. A flat beer pricing environment,
  3. Intense competition,
  4. Higher raw material costs and
  5. Higher excise

 

The author examined how the three Nigerian brewers (NB, GUINNESS and INTBREW) under its firm’s coverage have managed headcount and related expenses to improve efficiency and his key finding is that Guinness Nigeria has been more proactive than Nigerian Breweries in managing its staff costs in recent years. International Breweries had the lowest wages per head (pre-merger) on average 56.4% and 53.8% below NB’s and Guinness’, respectively, in FY14-17 while analysis of NB’s salary structure indicates that it still has a disproportionate number of high earners relative to its peers; hence, its recent headcount reduction efforts may have only a limited impact on margin recovery.

 

Visit Nigerian Breweries Plc IR Page in Proshare MARKETS

Nigerian Breweries Plc - One Year Share Price Movement in Graph

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Visit Guinness Nigeria Plc IR Page in Proshare MARKETS

Guinness Nigeria Plc - One Year Share Price Movement in Graph

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Visit International Breweries Plc IR Page in Proshare MARKETS

International Breweries Plc - One Year Share Price Movement in Graph

Proshare Nigeria Pvt. Ltd.


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4.      INTBREW Declares N7.137bn Loss in Q3 2018 Results,(SP:N30.20k)

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9.      Analyst Expectations Ahead of GUINNESS Q1 2019 Results For The Period Ended 30 Sep 2018

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