Nigerian Breweries Shareholders Exit Positions as Loss Grows
As uncertainties grow over its dividend payment, equities investors sell down interest in Nigerian Breweries Plc stock following an unimpressive earnings performance. Data from the Nigerian Exchange showed that share price declined to N33 as market reacted negative to Nigerian Breweries earnings slump in 2024.
On Friday, more than 1.8 million shares valued at N60.027 million were traded in the stock market amidst earnings announcement. Analysts expect further reactions next week as investors digest the company’s results. The brewer share is now trading at discount of N5 below 52-week high on the Nigerian Exchange.
Despite efforts to curb costs pressures facing its operations, Nigerian Breweries reported a huge increase in net loss for 2024. Dividend seeking equities investors reduced interest in the brewer’s shares in the local bourse on zero dividend payment in two years.
Details from Nigerian Breweries Plc results revealed that the company loss for the year expanded by more than 36% year on year to N145 billion. Supported by price adjustments on its legacy products, net revenue of the company rose by more than 79% to N1.074 trillion from N599.509 billion in the comparable year in 2023.
Its financial report revealed that net loss climbed by 36.5% year on year to N144.338 billion from N105.769 billion in the comparable period in 2023 at the company level. Net loss puffed up to about N145 billion at the group level, management said the results were shaped by complex and challenging environment, significantly impacting operations and livelihood nationwide.
This resulted in a significant loss per share of N12.07 on each shares outstanding. Due to pressure on earnings, Nigerian Breweries Plc has not declared dividend in 2 years. “Economic pressures, including high inflation rate and devaluation of the naira, drove up operational costs and the price of raw materials’, the company said in its audited report.
Nigerian Breweries recently offered rights issues to shareholders to recapitalise the company. This lifted its total equity significantly. Its audited statement showed that total equity has increased by 614% year on year to N465.465 billion from N65.169 billion in 2023. #Nigerian Breweries Shareholders Exit Positions as Loss Grows Interbank Rates Slow as Remita, FAAC Credits Boost Liquidity
