- Nigerian Breweries: Profit Dips By 31% in Q1, 2020
The Nigerian Breweries Plc has reported a 31.4 percent decline in profit after tax for the quarter ended March 31, 2020.
In the unaudited financial results published on the Nigerian Stock Exchange, the company’s profit after income tax dipped from N8.015 billion achieved in the corresponding quarter of 2019 to N5.505 billion in the first quarter (Q1) 2020.
Net revenue declined by 0.09 percent to N83.204 billion, down from N83.277 billion recorded in the same period of 2019. Also, results from operating activities declined by 22.36 percent during the quarter under review to N10.915 billion from N14.057 billion reported in the corresponding quarter of 2019.
Similarly, profit before tax dropped by 27.77 percent from N11.458 billion filed in Q1, 2019 to N8.275 billion in Q1, 2020.
Nigerian Breweries attributed the declines to the negative impact of COVID-19 on business operations during the first quarter.
The company’s earnings per share declined from 100 kobo from Q1 2019 to 69 kobo in Q1 2020.
“The Covid-19 crisis continues to impact all businesses, with the effect expected to be more pronounced in the future. The priority for us is to protect the health, safety and welfare of our employees, customers, and partners, as well as support the Government and its agencies as they work to reduce the impact of the outbreak,” the company stated.
“At this stage, it is not possible to determine the financial impact of Covid-19 on our Company given the lack of visibility on the end date of the pandemic or on how long it would continue to impact the Nigerian economy. The Company has a strong Balance Sheet and the Board and Management are focusing on efforts to mitigate the impact on our business.”