Nigeria: Nigerian Breweries profit hit N6.6bn in first quarter

A total of N6.6bn has been declared by Nigerian Breweries Plc as profit before tax (PBT) for its first quarter ending 31st March, 2007, according to company’s press release, June 11. This represents a 25% increase over the N5.3 billion PBT declared for the same period in 2006.

The company’s unaudited and provisional result for the first quarter released recently shows that the company made a turnover of N25.5 billion, that is, a 29% increase over the N19.8 billion achieved for the corresponding period of 2006.The increase in turnover resulted from the market growth which started mid-2006 and continued during the first quarter of 2007.

The company’s Profit After Tax (PAT) for the period stood at N4.4 billion, showing a 32% increase over the N3.3 billion of the first quarter of 2006. A significant reduction in Net Financing Costs was recorded from -N221.7 million (negative) in the first quarter of 2006 to N34.9 million (positive) in the first quarter of 2007.

A statement by the company said improvement in PAT resulted from improved Operating Profit and positive Net Financing Costs as a consequence of the liquidation of debts. The statement said the Directors of the company are of the opinion that the positive trend is likely to continue given a stable business climate.

It would be recalled that the company only last month at its Annual General Meeting declared a profit after tax of N10.9 billion from a turnover of N86.3billion for the 2006 financial year. A total dividend of 144kobo per share was declared for the company’s shareholders. Speaking at the pre-2007 Annual General Meeting media presentation in May, Michiel Herkemij, the company’s Managing Director and Chief Executive Officer had told investors to expect a far better result since amongst others, the company’s huge debts have been liquidated as a result of the company’s positive thinking on cash flow

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