Nigerian Breweries Plc has posted a 10.02 per cent decline in profit after tax for the half year ended June 30 2015. According to a notice from the Nigerian Stock Exchange (NSE), the statement of financial position as at the period under review showed profit after tax dropped by 10.02 per cent to N21.477 billion during the six-month period to June 30, as against N23.871 billion in 2014.
Similarly, pre-tax profit shed 8.53 per cent to N30.989 billion in 2015 from N33.882 billion in 2014.
However, gross earnings firmed up to N151.673 billion in 2015 as against N141.495 billion recorded a year earlier, indicating a growth of 7.19 per cent. Financial analysts at the FBN Capital, said the sales growth was an improvement over the flattish y/y performance delivered by the company in Q1 2015.
“We believe that the sales growth reflects a favourable price-volume mix, due to price increases of less than 5 per cent implemented towards the end of Q1 2015.
Further down the P&L, the combination of a -644bp contraction in gross margin to 45.6 per cent, a 10 per cent y/y increase in opex and a 13 per cent y/y increase in net interest expense led to PBT falling by -14 per cent y/y,” they said. They noted that the decline on the PAT line widened to -18 per cent y/y due to a 3 per cent y/y increase in tax charges (the tax rate increased by 332bps y/y).
“Sequentially, sales, PBT and PAT grew by 17 per cent q/q, 15 per cent q/q and 13 per cent q/q respectively. The q/q trends are reflective of seasonally stronger sales in the Q2 quarter relative to Q1.
Compared with our forecasts, while sales beat by 7 per cent, PBT and PAT missed by 10 per cent and 12 per cent respectively mainly due to the negative surprise in gross margin,” the analysts noted.
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