Earnings ReportFeatured

Depressed Earnings: Nigerian Breweries Full Year Profit Dips By 54.25% Against Comparable Year

 

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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Earnings ReportFeatured

Depressed Earnings: Nigerian Breweries Full Year Profit Dips By 54.25% Against Comparable Year

 

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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