Nigerian Breweries Plc, on Monday reported a 9% drop in first quarter sales (Jan – March) to ₦82.9bn ($230 million) from ₦91.2bn in 2017.
The brewing giant said that consumer spending has yet to recover despite signs of improvement in the country’s macroeconomic conditions.
In the release of its first quarter results on Thursday, Heineken N.V., the parent company of Nigerian Breweries blamed the decline in sales at its Nigerian unit partly on destocking at the distributor’s level. Destocking is when a distributor reduces the quantity of stock held due to weak demand.
Net finance charge in Q1 grew 37% to ₦2.4bn, adding to the firm’s challenges. Profit after tax declined 11% to ₦10.2bn ($28 million) from ₦11.4bn in the previous year.
Despite the disappointing results, the company said that its board remains confident that it has a clear strategy to deliver a good return on investment for its shareholders.
Nigerian Breweries is Nigeria’s largest brewer of alcoholic and non-alcoholic beverages including beer, malt drinks and soft drinks.
$1 = ₦360
Powered by WPeMatico