Business
COVID-19, VAT Hike Slow Nigerian Breweries Burst
Nigerian Breweries Plc says it earned a revenue of N152 billion for the half-year (H1) ended June 30, 2020.
Mrs. Sade Morgan, Corporate Affairs Director said this in a financial report on the company’s unaudited and provisional results sent to the Nigerian Stock Exchange (NSE) on Monday in Lagos.
A breakdown of the results showed that the revenue of N152 billion was a drop, compared to the N170 billion recorded in the corresponding period of 2019.
According to the report, the Company also made a N5.70 billion Profit after tax in the period under review.
“The half-year results for the 2020 financial year show a strong balance sheet for the Company despite several factors that negatively impacted on the Company’s operations, such as an increase in Excise Duty, a rise in inflation, an increase in VAT from 5 to 7.5 per cent, as well as the impact of the coronavirus (Covid-19) pandemic on businesses worldwide.
“Despite these challenges, the Company’s financial position shows stability and sustained profitability.
“To support the fight against the Covid-19 pandemic, the Company, during the period under review, made various donations in cash and kind valued at about N531 million out of a phased commitment of N600 million to the Federal and State Governments’ Covid-19 Relief Funds,” the statement said.
The Board of Directors commended the company’s management for its efforts to mitigate the impact of the pandemic on the business.
It also lauded the prudent management of its resources as reflected in a seven per cent reduction in expenses incurred on marketing, distribution, and administration.
“The Board expressed confidence that the Company is well-positioned to continue to deliver return on investment to Shareholders.
According to the Board, the Company’s priority during this period “remains ensuring the health, safety and welfare of employees, customers and partners”.
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