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NB's Turnover Hits N20bn in 3 Months

Posted by By Uche Obike and Eromosele Abiodun on 2005/07/18 | Views: 357 |

NB's Turnover Hits N20bn in 3 Months


Nigerian Breweries Plc (NB) has recorded N20.0 billion turnover during the first quarter ended March 30, 2005, as against N17.9 billion in the comparable period of 2004. This represents a growth of N2.1 billion or 11.7 per cent.

Nigerian Breweries Plc (NB) has recorded N20.0 billion turnover during the first quarter ended March 30, 2005, as against N17.9 billion in the comparable period of 2004. This represents a growth of N2.1 billion or 11.7 per cent.

The company's unaudited financial results for the period under review released to the market operators at the weekend by the Nigerian Stock Exchange (NSE) also showed N2.1 billion profit after taxation, compared with N1.8 billion in 2004, representing an increase by N300 million or 16.6 per cent.

The Managing Director/Chief Executive Officer of NB, Mr. Festus B. O. Odumegwu recently in Lagos said that the performance of the company during the financial year ended December 31, 2004, reflected a substantial growth when the minimal growth in total brewed products market is taken into consideration.

He announced that the total brewed products market in 2004 recorded a minimal growth from 9,603 million hectoliters recorded in 2003 to 9,638 million hectoliters in 2004, representing a 0.3 per cent growth.

According to Odumegwu, Nigerian Breweries recorded a growth of one per cent ending the year with 60 per cent market share.

However, he said that this has gone up to 63 per cent by the end of the first quarter of year 2005.

“While Star lager, the beer, which continues to enliven our nation’s entertainment environment maintained its premier position in the lager market, Gulder, the ultimate beer which has added the ultimate search series to Nigeria’s reality television viewing, recorded a significant growth of 15 per cent, growing also in market share by three per cent from 27.5 per cent in 2003 to 30.6 per cent in 2004. Legend, the fun stout in a class of its own makes no pretences, as it continues to rejuvenate the stout market. In the non-alcoholic malt drink sector, Maltina remains the favourite choice of the Nigerian family, having pioneered its fortification with vitamin A,” said Odumegwu.

With the company’s culture to grow its market share and its aggressive market strategy, Odumegwu assured the investing public that enhanced returns on investment is a major priority in the company.

He attributed the decline by 17 per cent in profit before taxation to the interest charges of N5.2 billion, representing a 155 per cent increase over the N2 billion figure in 2003.

Nigerian Breweries’ profit before taxation dropped from N10.9 billion recorded in 2003 to N9.1 billion in 2004.

Judging the operating environment and performance by competitors, Odumegwu said the company’s performance during the year under review should be seen as outstanding, adding that an operating profit and growth of 10 per cent is respectable in the context of the prevailing operating environment.

The NB boss explained further that the company’s profit after interest and taxation reflected the following:
•cost of investments in plant and machinery, needed for upgrading all our operating facilities;
•the necessary capitalization of interest charges; and
•the payment of full taxes now that these investments have been fully executed.
He, however, emphasised that the fundamentals of the company’s business remained strong as reflected by the 10 per cent increase in the operating profit that was generated from the business operations during the year under review.




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Fay(Katy, Texas, US)says...

Actually translates to bravehearted.