Nigerian Breweries records 18% profit decline in Q2

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Nigerian Stock Exchange (NSE) has published Nigerian Breweries (NB) second quarter (Q2) 2015 results which showed that despite sales growth of 13 per cent to N81.8 billion as against Q2 2014, both profit before tax (PBT) and profit after tax (PAT) declined by 14 per cent and 18 per cent to N16.6 billion and N11.4 billion respectively.

The sales growth is an improvement over the flattish performance delivered by the company in Q1 2015.

However, the combination of a -644bp contraction in gross margin to 45.6 per cent, a 10 per cent increase in opex and a 13 per cent increase in net interest expense led to PBT fall while the decline on the PAT line widened due to a 3 per cent increase in tax charges (the tax rate increased by 332bps.

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