Biden’s capital gains tax disturbs Wall street

Nigeria’s largest brewer and manufacturer of alcoholic and non-alcoholic drinks, Nigerian Breweries Plc recently declared a 38.59% year-on-year growth in profit to N7.66 billion for the first quarter of 2021, up from the N5.53 billion profit it reported in the corresponding quarter of 2020.

Here’s what the company reported in Q1 2021 compared with what it posted last year, Q1 2020:

Earnings per share: N0.96 vs. N0.69 last yearNet Revenue: N105.68 billion vs. N83.23 billion last yearCost of Sales: N66.00 billion vs. N48.33 billion last yearMarketing and Distribution Expenses: N19.80 billion vs. N18.80 billion last year.Administrative Expenses: N5.74 billion vs. N5.34 billion last year.Finance costs: N5.74 billion vs. N5.34 billion last year.Profit after tax: N7.66 billion vs. N5.53 billion last year.

Nigerian breweries’ impressive bottom-line growth can be directly linked to the 26.98% increase in net revenue, buoyed by the increase in sales during the quarter. The company’s net revenue in q1 2021 was N105.68 billion, up from the N83 billion net revenue it made from sales in the corresponding period of 2020.

The financial performance of the leading brewer during the period is a clear indication of a new turn in the operation of the firm as Nigerian Breweries operating profit increased from N10.94 billion in Q1 2020 to N14.50 billion in Q1 2021.

Despite these impressive performances, the company’s profit was pressured by a 36.56% increase in the cost of sales at the back of the persistent increase in input costs. The company’s management however revealed that the persistent increase in input costs can be linked to the COVID-19 pandemic, the increase in VAT, currency devaluation and FX scarcity.

Shares of Nigerian Breweries Plc gains 2.2%

The shares of Nigerian Breweries closed higher today as investors priced in the impressive results which the company delivered in the first quarter of 2021.

At the close of the market today, shares of the brewer increased by 2.2% to close at N51.2 per share, lifting the company’s capitalization to N409.44 billion.

At the current price, shares of Nigerian Breweries are trading 70.67% higher than its 52-week low of N30 per share, and 19.05% lower than its 52-week high of N63.25 per share.

Source: Nairametrics

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