The review of Net Profit Margin witnessed a mixed trend. The Net Profit Margin moved from 5% in 2019 to -17.64% in 2023.
The average EBIT Margin for the period under analysis was 11.65% with 2023 and 2022 performing the worst and best, respectively.
In the current year, Nigeria Breweries ICR was 0.24 – compared to 2019 when it was 2.96.
The Asset turnover stood at 0.85 times in 2023 from 0.63 in 2019, implying a low performance or Assets of the business in relation to revenue.
Profitability
The revenue of Nigeria Breweries has increased year on year. The revenue increased by 4.66% between 2019 and 2020 and a further 29.734% increase was recorded between 2020 and 2021. There also occurred an increase of 989.07% between 2022 and 2023 (the current period).
Nigeria Breweries performance in profitability looks good as the return on capital employed also recorded good performance during the period of analysis.
Liquidity
The company’s result in liquidity looks bad, as current ratio/acid test increase from 0.39:1/0.18:1 to 0.57:1/0.26:1 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 falling year on year. The gearing position of the company appears to be low as it stood at 11.31 in the current year.