Nigerian Breweries profit declines by N9.7bn, spends 57% of revenue on production

IN spite of increase in its revenue for the year ended 31st December, 2016, Nigerian Breweries Plc has reported a decline of N9.652 billion in the profit after tax.
The brewing company profit after tax for the reviewed period stood at N28.397 billion from N38.049 billion it made during the same period of 2015. This dropped translating to 25.37 percent at the end of 2016 financial year.
Its profit before tax also went the same way as it plunged by N14.885 billion or 27.31 percent, from N54.508 billion to N39.623 billion at the end of 2016 financial year.
However, Nigerian Breweries Pls revenue for the period under review rose by N19.837 billion, represented 6.75 percent over N293.906 billion it made in 2015 to close 2016 financial year with N313.743 billion.
The company’s spent 56.80 percent of its revenue on production as against 50.95 percent spent in 2015. It cost of sales gulped N178.219 billion in 2016, increased by N28.483 billion which is 19.02 percent of N149.736 billion spent in 2015.
The gross profit of Nigerian Breweries decreased by N8.644 billion which is 6 percent of N144.169 billion it made in 2015 to stood at N135.525 billion at the end of 2016 financial year.
It marketing and distribution expenses jacked up from N58.455 billion to N61.312 billion at the close of 2016. This represents N2.857 billion or 4.89 percent increased.
Meanwhile it reduce administrative expenses by N2.857 billion, from N23.969 billion to N21.925 billion at the end of 2016 financial year.
The shareholders of the company will pocketed a total dividend of N28.386 billion represented N3.58 kobo per share for the 2016 financial year recommended by the board if approved by shareholders.
If approved by the shareholders, the payment of the dividend will be made on Thursday, 4th May, 2017, to shareholders whose names appear on the company’s register of members at the close of business on Wednesday, 8th of March, 2017. Having earlier paid an interim dividend of approximately N7.9 billion that is N1.00 kobo per share which was declared in October 2016, the final dividend will be N20.457 billion that is N2.58 kobo per share.