INTERNATIONAL Breweries Plc said its first quarter (Q1) profit for the period ended June 30, 2015 declined 40.6 percent to N420.80 million from N708.21 million recorded the same period of last year.
Similarly, post tax profit dropped same margin of 40.6 percent to N618.82 million from N1.04 billion reported a year earlier.
Revenue of the company moved to N5.22 billion from N5.21 billion recorded in the Q1 of 2014, the brewer said in a filing to the Nigerian Stock Exchange ,NSE.
International Breweries’ results for the 12 months period ended March 31, 2014, had shown a decline in bottom line. Profit After Tax, PAT, declined slightly from N2.3 billion to N2.1 billion, representing a drop of 8.6 per cent. The company’s management attributed the decline in profit to increased corporate tax exposure. Reflecting the increase in production capacity, capital employed increased by 14 per cent over that of the previous year from N13.2 billion to N15.1 billion. However, revenue results for the period under review had shown a slight improvement over that of the previous year ended 31 March 2013.
The company recorded a turnover of N18.4 billion in 2014 compared with N17.4 billion over the prior year, which showed a growth of 6 per cent, while the gross profit for the year was N8.9 billion versus N7.7 billion reported in 2013. This depicted a marked leap by 16 per cent over that of the previous year. Operating profit also improved by 5 per cent over prior year.
Taking a cue from the loss in 2014 bottom line, the company’s account remained in a negative trajectory for the nine months ended December 31, 2014, as profit after tax declined by 24.43 per cent to N1.45 billion from N1.91 billion in the same period of the corresponding year (nine months ended December 2013). Sales however, increased by 13.02 per cent to N15.31 billion. The company’s finance costs rose by 64.33 per cent to N1.23 billion in the nine months to December 2014 from N748.33 million the preceding year. It had huge debt in the balance sheet as debt-to-equity ratio moved to 72.06 per cent in the review period from 55.41 per cent last year, while total debt in the balance sheet increased by 36.67 per cent to N8.41 billion.
The company’s operating expenses were up by 26.40 per cent to N4.46 billion compared with N3.52 billion the preceding year. Cost of sales increased by 17.05 per cent in the review period to N7.50 billion as against N6.41 billion last year. Net margin, a measure of profitability and efficiency, reduced to 9.40 per cent from N14.15 per cent, while operating expense moved to 29.52 per cent compared with 25.97 per cent last year. The results of International Breweries’ financial year ended March 31, 2015 equally showed bad numbers with 28 per cent decline in profit before tax.
In a filing with the NSE, the brewery company posted a profit before tax of N2.815 billion as against N3.925 billion recorded during the comparable period of 2014, representing a drop of 28 per cent. Similarly, profit after tax fall from N2.105 billion posted the previous year to N1.946 billion during the year under review, accounting for a drop of 7.55 per cent. However, the company’s revenue grew to N20.649 billion in 2015 from N18.493 billion, representing an increase of 11.65 per cent.

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