Nigerian Breweries Plc reported a steep decline in profit for 2020 accounting year, for the period ended 31 December 2020, according to the 2020 annual report and accounts released by the company on Friday.
Revenue rose by 4.3% to N337.001 billion from N323.00 billion recorded in 2019.
Gross profit dipped by 9.6% to N118.69 billion in 2020 as the cost of goods sold rose disproportionately with the revenue by 13.9% to N218.35 billion (N191.76 billion in 2019).
Profit for the year slumped by 54.3% to N7.37 billion in 2020 from N16.11 billion in 2019.
Similarly, earnings per share slumped by 54.2% to 92kobo in 2020 from 210kobo in 2019.
The finance cost rose by 50.8% to N18.27 billion in 2020 from N12.11 billion in 2019.
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A final dividend of 69kobo was proposed by the directors of the company. This is a 37.8% decline from the 151kobo it paid in 2019. The company had paid an interim dividend of 25kobo, also 50% down from the 50kobo interim dividend it paid in 2019.
Nigerian Breweries in 2020 paid out almost double of its profit for the entire year as a dividend. The company paid a total dividend of N14.08 billion (the combination of the final dividend for 2019 and the 2020 interim dividend.
The total assets rose by 16.5% to N445.86 billion in 2020 from N382.78 billion in 2019.
The total liabilities increased by 32.4% to N284.68 billion in 2020 from N215.03 billion in 2019.
Shareholders’ equity declined by 3.9% to N161.08 billion from N167.65 billion in 2019 mainly because Nigeria Breweries Plc made dividend expense from its retained earnings during the year in review.
Nigerian Breweries lowered its long term debt by 22.1% to N39.64 billion (N50.89 billion in 2019).
Whereas its short term loan and borrowings skyrocketed by 973.7% to N51.81 billion (4.83 billion in 2019) while trade and other payables rose by 35.4% to N139.2 billion (N102.78 billion in 2019).
The cash and cash equivalents rose by 377.4% to N30.37 billion in 2020 from N6.36 billion in 2019.
Nigerian Breweries Plc generated N83.27 billion from operating activities in 2020 (N82.72 billion in 2019).
The company used N37.2 billion and N22.07 billion in investing activities and financing activities respectively in 2020.
Extract from Nigeria Breweries Plc’s audited financial statements for the period ended 31 December 2020.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.