Nigeria Breweries stocks set for a rebound.
May 16th, 2007 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
By Ogbuotobo Chuks
I am sure this would definitely interest investors as the balance sheet of Nigeria Breweries Plc is now clean and the company is set to offer investors value for their money.This was confirmed by the company’s Managing Director, Mr. Michiel Herkemij. He said that the company reduced borrowing from N9.8 billion in 2005 to nothing in 2006.
Amplifying further on the company’s balance sheet, he said the company’s stocks rose from N12.3 billion in 2005 to N12.7 billion in 2006, while equity rose from N34.7 billion to N36.2 billion.Operating profit rose from N15.5 billion in 2005 to N17 billion in 2006 while interest fell from 2.1 per cent in 2005 to 0.5 per in 2006. Net profit as percentage of turnover rose from 10.3 per cent in 2005 to 12.6 in 2006.
Consequent upon the performance, the board has recommended a dividend of N10.9 billion up from N7.9 billion paid in 2005, from a net profit which rose fromN8.3 billion to N10.9 billion.Dividend per share therefore rose from 105 kobo to 144 kobo, while earnings per share 109 kobo to 144 kobo, as per earnings ratio rose from 2.7 to 3.9.
The company’s performance last year, according to him, was enhanced by the introduction of new products like Guilder max, and Farouz soft drink. Projecting into the future, Herkemij said the company has confidence in the country’s economy and its own management. He assured stakeholders that there would be phased investments to cope with growth, and the company will keep its market share while striving to get more in order to deliver value to shareholders, while also building and improving relationship with stakeholders.
The company has been in deep waters for some time due to their huge debt profile which it incurred when it built when a factory was constructed in Enugu, Nigeria. The share price fell from the N100 region to as low as N35 this year.
According to the company ,it’s company export business would also be enhanced, according to Herkemij especially to the West African sub-region and United Kingdom.
(No Ratings Yet)
Loading ...