Company: NIGERIAN BREWERIES PLC (NB)
Rating: Sell
Current Market Price at Earnings Release: N59.00
Intrinsic Value: N18.96
Latest Cash Div: N0.69
By: Jeariogbe Tunde Segun (Equity Analyst)
Key Financial Metrics
- Dividend Information
- Dividend: N0.69
- Closure Date: 11th – 12th March, 2021
- Qualification Date: 10th March, 2021
- Payment Date: 23rd April, 2021
- Agm Date/Venue: The Shell Nigeria Hall, Muson Centre, 8/9 Marina, Onikan, Lagos State, Nigeria on 22nd of April, 2021
- Financial Indices
- Turnover Increase by Marginal 4.35%
- Direct Cost Improved by 13.87%
- Profit for the year dropped by 54.25%
- Total Comprehensive Income for the year dropped by 64.99%
- Book Value/Share is estimated at N20.16 this is below the current market valuation and far above our fair value for the shares of Nigerian Breweries
| NIGERIAN BREWERIES | |
| Bourse | Nigerian Stock Exchange |
| Code Name | NIGERIAN BREWERIES |
| Sector | CONSUMER GOODS |
| Market Classification | MAIN BOARD |
| Nature of Business | Brewing and Marketing of Lager Beer, Stout and Non-Alcoholic |
| Date of Incorporation | November 16th 1946 |
| Date Listed | September 5th 1973 |
| End of Accounting Year | 31st December |
| Website | www.nbplc.com |
| Registrar | First Registrars and Investor Services Limited |
| Auditor | Deloitte & Touche |
| Share Price@Relsd (N) | 59.00 |
| Earnings per Share | 0.92 |
| Intrinsic Value(N) | 18.96 |
| Share Outstanding | 7,996,902,051 |
| Market Capitalisation | 471,817,221,009 |
| NIGERIAN BREWERIES | |||
| Statement of Comprehensive Income | |||
| 2020(000) | 2019(000) | %CHG | |
| Turnover | 337,046,213 | 323,007,470 | 4.35 |
| Cost of Sales | 218,355,350 | 191,756,513 | 13.87 |
| Operating Profit | 29,605,001 | 35,205,600 | -15.91 |
| OPEX | 89,913,917 | 97,050,643 | -7.35 |
| DEPRECIATION | 36,830,139 | 31,402,434 | 17.28 |
| AMORTISATION | 1,439,338 | 1,327,628 | 8.41 |
| FINANCE COST | 18,274,739 | 12,114,546 | 50.85 |
| NET FINANCE INCOME | 18,028,456 | 11,853,846 | 52.09 |
| PBT | 11,576,545 | 23,351,754 | -50.43 |
| TAX | 4,208,176 | 7,245,842 | -41.92 |
| PAT | 7,368,369 | 16,105,912 | -54.25 |
| TOTAL COMP INCOME | 6,725,189 | 19,210,206 | -64.99 |
| Statement of Financial Position | |||
| Current Assets | 93,195,412 | 72,528,985 | 28.49 |
| Non Current Assets | 352,661,790 | 310,284,537 | 13.66 |
| Total Assets | 445,857,202 | 382,813,522 | 16.47 |
| Current Liabilities | 210,467,590 | 127,528,326 | 65.04 |
| Non Current Liabilities | 74,210,570 | 87,499,217 | -15.19 |
| Total Liabilities | 284,678,160 | 215,027,543 | 32.39 |
| Net Assets | 161,179,042 | 167,749,979 | -3.92 |
| Retained Earnings | 83,093,100 | 89,382,366 | -7.04 |
| Shares Outstanding | 7,996,902,051 | 7,996,902,051 | |
| Financial Strength/Solvency Ratio | |||
| TICKERS | 2020 | 2019 | %CHG |
| Debt Ratio | 63.85% | 56.17% | 13.67 |
| Total Debt to Equity Ratio (MRQ) | 176.62% | 128.18% | 37.79 |
| Equity Ratio | 36.15% | 43.82% | -17.50 |
| TICKERS | 2020 | Industrial Average | %CHG |
| Beta Value | 1.20 | 1.17 | 2.56 |
| PROFITABILITY RATIOS | |||
| TICKERS | 2020 | 2019 | %CHG |
| EBITDA MARGIN | 8.78% | 10.90% | -19.41 |
| PRE-TAX MARGIN | 3.43% | 7.23% | -52.49 |
| EFFECTIVE TAX RATE | 57.11% | 44.99% | 26.95 |
| CS TO TO | 64.78% | 59.37% | 9.13 |
| ROE | 4.57% | 9.60% | -52.39 |
| ROA | 1.65% | 4.21% | -60.72 |
| EFFICIENCY RATIOS | |||
| 2020 | 2019 | %Chg | |
| OPEX TO TO | 26.68% | 30.05% | -11.21 |
| TO TO TA | 75.60% | 84.38% | -10.41 |
| Working Capital Turnover | (2.87) | (5.87) | -51.06 |
| Working Capital Ratio | 0.44 | 0.57 | -22.14 |
| Investment/Valuation Ratios | |||
| Tickers | 2020 | 2019 | %Chg |
| Price at Released | 59.00 | 51.50 | 14.56 |
| EPS | 0.92 | 2.01 | -54.25 |
| TCIP/SHARE | 0.84 | 2.40 | -64.99 |
| P/E-Ratio | 64.03 | 25.57 | 150.41 |
| Earnings Yield | 1.56% | 3.91% | -60.07 |
| BV/Share | 20.16 | 20.98 | -3.92 |
| PBV | 2.93 | 2.46 | 19.23 |
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