Nigerian Breweries

Key Performance Metrics

  • The review of Net Profit Margin witnessed a declining/surging trend. The Net Profit Margin declined from 9.02% in 2017 to 2.96% in 2021.
  • The average EBIT Margin for the period under analysis was 11.1%, with 2020 and 2017 performing the worst and best, respectively.
  • In the current year, Nigerian Breweries was able to cover its interest liabilities 2.34 times in the current year- compared to 2017 when it was 5.41 times.
  • The Asset turnover stood at 0.94 times in 2021 from 1.91 in 2017, implying a low performance on Assets of the business in relation to revenue.

Profitability

  • The revenue of Nigerian Breweries has increased year on year. The revenue decreased by 4.3% between 2017 and 2018 and a further 8.1% decrease was recorded between 2018 and 2019. There also occurred an increase of 29.7% between 2020 and 2021 (the current period). 
  • Nigerian Breweries’ performance in profitability looks good as the return on equity also recorded good performance during the period of analysis.

Liquidity

  • The company’s result in liquidity looks strong, as current ratio maintained stability from 0.44:1 to 0.44:1 on the last year. Which implies that the company has enough assets to settle its current liabilities.

Capital Structure

  • Nigerian Breweries is both equity and debt financed.
  • The debt-to-equity (D/E) ratio has been increasing year on year. The gearing position of the company appears to be high as it stood at 180% in the current year.

Source: Nigerian Breweries Annual Report

Share This Showroom

Open chat
1
Need Help?
Powered by BFI Insights
Hello 👋
How can we assist you today?