NB Grows Profit by 18% in 9M’2021, Compensate Investors With ₦0.40 Dividend

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Nigerian Breweries Plc, on Thursday 28th October 2021 released its Third Quarter 2021 Financial Statement to the investing public.

According to the report, the company increased in both the top and bottom-line as the revenue rose by 32.2% (from ₦234.0Bn in 9M’20 to ₦309.3Bn), driven by the seasonal effect and improved economic activities.

The company also grew in Other Income by 52.59% to ₦894.1Mn in 9M’21 as against ₦586Mn in 9M’20.

At the expense side, the company’s Cost of Sales, Distribution and Administrative Expenses rose by 38%, 32.5% and 10.7% respectively to ₦198.7BN (vs ₦ 144.1Bn in 9M’20), ₦69.1Bn (vs ₦52.2Bn in 9M’20) and ₦17.6Bn (vs ₦15.9Bn) in 9M’21.

Similarly, the Net Finance Cost climbed marginally by 4.2% from ₦11.5Bn in 9M’20 to ₦12.1Bn in 9M’21 following the 56.2% decline in Finance Income and 3.1% increase in Finance Cost.

Furthermore, despite the increase in the Expense line items and Net Finance Cost, the company jumped in both its PBT and PAT, which rose by 16.0% (from ₦11.0Bn in 9M’20 to ₦12.7Bn in 9M’21) and 18.4% (from ₦7.0Bn in 9M’20 to ₦8.2Bn in 9M’21), respectively.

Consequently, the Earnings Per share also grew by 17.3% to ₦1.02 per share, as the company decided to reward the shareholders with an Interim Dividend of ₦0.40 per unit share, representing 39.3% paying ratio and 0.7% Dividend Yield compared to the Thursday, closing price of ₦54.25.

In addition, ROA and ROE improved to 1.8% and 4.9%, respectively.

While, the Current and Cash Ratio recedes to 0.5x and 0.05x, compared to 0.6x and 0.2x recorded in 9M’20.

Finally, we maintained our target price of ₦65, representing an upside potential of 19.8%, compared to the ₦54.25 closing price on Thursday, 28th October 2021.