The impact of the stiff competition in the nation’s brewery industry manifested last week when the brewery industry heavyweight, Nigerian Breweries, released its full year annual report for the period ended 31st December 2019, to the effect that the company’s gross revenue remained flat while the profit after tax (PAT) and final dividend per share fell by 16.9 percent each in 2019.
Initially dominated by Nigerian Breweries and Guinness, Nigeria’s brewery industry now has other competitors such as the International Breweries, Champion Breweries, among others. In 2019, Nigerian Breweries realised N323 billion as net revenue, which was 0.43 percent lower than N324.88 billion it realised as net revenue in 2018.
Revenue from Nigeria, which accounts for 99 percent of the firm’s total revenue, fell marginally by 0.4 percent from N324.19 billion in 2018 to N322.81 billion in 2019. On the contrary, proceeds from export increased by 4.22 percent from N190.48 million in 2018 to N198.52 million in 2019, confirming the earlier findings that border closures might have negligible or no effects on non-oil exports.
Gross profit for the period rose by 3.42 percent to N131.25 billion in 2019 from N126.90 billion in 2018 due to 3 percent drop in the cost of sales which fell to N191.76 billion in 2019 as against N197.48 billion in 2018.
Source:
Teliat sule
Initially dominated by Nigerian Breweries and Guinness, Nigeria’s brewery industry now has other competitors such as the International Breweries, Champion Breweries, among others. In 2019, Nigerian Breweries realised N323 billion as net revenue, which was 0.43 percent lower than N324.88 billion it realised as net revenue in 2018.
Revenue from Nigeria, which accounts for 99 percent of the firm’s total revenue, fell marginally by 0.4 percent from N324.19 billion in 2018 to N322.81 billion in 2019. On the contrary, proceeds from export increased by 4.22 percent from N190.48 million in 2018 to N198.52 million in 2019, confirming the earlier findings that border closures might have negligible or no effects on non-oil exports.
Gross profit for the period rose by 3.42 percent to N131.25 billion in 2019 from N126.90 billion in 2018 due to 3 percent drop in the cost of sales which fell to N191.76 billion in 2019 as against N197.48 billion in 2018.
Source:
Teliat sule
