Nigeria Breweries Plc
The firm’s maintained its uninspiring performance, as both topline and bottom-line indicators were on a slide for the 9months reporting period.
Gross earnings: NBplc, gross earnings for the period contracted marginally by 0.78% to N234.841million from N236.683million, this dip was propelled by decline recorded across the component that makes up the earnings element, as revenue declined by 0.70%.
Operating Cost: NBplc, operating cost that makes up its operating expenses declined by 5.20%, this was propelled by a reduction in the firm’s administrative expenses, while the cost of production increased by 3.29%.
Finance Cost: NBplc, cost of financing its activities firmed up by 43.39% from N8.180million to N11.729million, as the firm increases its working capital financing through the issuance of commercial paper, whose immediate ripple effect was the increased cost of finance, through the year.
PAT: Given the unimpressive topline drivers for the period, the firms’ Profit after tax dipped by 43.47% to N6.939million from N12.375million, as operating income for the period was on a slide, as aggregate operating costs inched higher.
Price –to –Earnings Ratio: The firms P/E ratio for the period indicate that the investing public will be willing to give an additional amount of Naira to acquire more share of the company, despite the current earnings per share of the firm that dipped by 43.49%, as such this may indicate a growth stock, given that most of it performance indicators have reported a decline in their average 9 months historical trends.
Earnings Yield: Given an atmosphere of a bullish rally in the fixed income space that was propelled by sliding yields, despite the low yield regime in the market, the firm’s earnings yield still underperformed when compared with a relative 10 years T-bills yield that is currently at 4.36%, as this will lower investor’s sentiment towards the firm shares.