Nigerian Breweries

[ttoladele]

Their new 100% dividend policy makes bonus issue unlikely since there will be less in reserve to capitalise. In priciple, it is a good stock for medium to long term investment.

[billions]

NB PLC
UNAUDITED RESULT FOR HALF YEAR ENDED 30-06-2008
2008 2007
TURNOVER N68.053b N51.870b
PROFIT BEFORE TAXATION N18.143b N12.647b
TAXATION (N5.805b) (N4.173b)
PROFIT AFTER TAXATION N12.337b N8.474b

[billions]

Originally Posted by billions

NB PLC
UNAUDITED RESULT FOR HALF YEAR ENDED 30-06-2008
2008 2007
TURNOVER N68.053b N51.870b
PROFIT BEFORE TAXATION N18.143b N12.647b
TAXATION (N5.805b) (N4.173b)
PROFIT AFTER TAXATION N12.337b N8.474b

Excellent result...NB is a great company.

[fredski]

Originally Posted by billions

Excellent result...NB is a great company.

I'll drink to that

[olusolakemmy]

Originally Posted by fredski

I'll drink to that

no be small beer boys they drink plus countless promo!!!
they dont have an option than to declare good profit

[nwoyearoh]

Originally Posted by billions

Excellent result...NB is a great company.

Salivating result; i hear say dem go giv away all the profit as dividend. e fit reach N3.56/share!. using a forecast div yield factor of 6.9% makes this a N68 stock.

[billions]

Proshare Articles
Nigerian Breweries Plc: Interim Results – Q2, 2008
Posted Tuesday, July 29, 2008
Equity Research Report:


Date: 28, July, 2008

Key Statistics

Sector Breweries

Date of Incorporation November 16, 1946

Date of Listing September 5, 1973

Year End December

No of Ordinary Shares 7,562,562,340

Capitalisation N 396,202,640,992.6

% of Market Capitalisation 3.86%

52‐Week High N 55.90

52‐Week Low N 39.10

YTD Return 4.08%

52‐Week Avg. Trade 3,363,053

Beta Value 1.51

Current EPS 3.01

Current PE 17.39

Fair Value: NGN 62.39

Current Price: NGN 52.39

Recommendation BUY



Gaining Grounds:

The unaudited Q2‘08 results of Nigerian Breweries Plc (NB) for the period ended 30 June, 2008 showed that its Turnover (TO) grew by 31.20% to N68.05bn, compared with N51.87bn in the corresponding period of 2007. Profit Before Tax (PBT) grew by 43.45% between 2007 and 2008 to N18.14bn from N12.65bn in the corresponding period of 2007. The tax provision which increased by 39.1% between 2007 and 2008 to N5.81bn from N4.17bn in 2007 brought about a Profit After Tax (PAT) of N12.34bn as against N8.50bn in 2007, representing a growth of 45.18%.

A cursory look at the company’s profit margins reveals a further improvement in the PBT margin in Q2 ’08 over Q2’07 and over the FY ’07 figure. The PBT margin increased marginally to 26.66% in Q2 ‘08 from 24.38% as at Q2 ‘07, and up from 24.95% as at the end of the financial year in December, 2007.


This shows that the company’s total cost as a percentage of TO stood at 73.34% slightly higher than 72.01% recorded as at in Q1 ’08, but down from 75.62% in the corresponding period of 2007. PAT Margin currently stands at 18.13% up from 16.39% in the corresponding period of 2007 and up from 16.95% as at FY ‘07.


The results also indicate that the percentage of the TO, PBT, and PAT in the Q2 ‘08 result to the Full Year Audited TO, PBT and PAT for the period ended December, 2007 are: 60.90%, 65.09% and 65.15%, respectively. This suggests that company has recorded improvements both in its top-line, and bottom-line in relation to the performance as at FY 07.



Looking at the Audited Accounts of NB in 2007, the cost of goods sold increased in 2007 over 2006 by 25.18% to N52.56bn. The increase was lower than the increase in TO which was up by 29.46% to N111.75bn, thereby leading to an increase of 33.50% in gross profit to N59.18bn. This resulted in a marginal increase in the gross profit margin from 51.36% in 2006 to 52.96% in 2007. The operating profit increased significantly by 61.41% in 2007 to N27.36bn. PAT increased significantly by 73.78% to N18.94bn from N10.90bn in the previous year. Both the capital employed and the shareholders’ funds increased by 18.06% (to N61.13bn) and 19.13% (to N43.18bn) respectively over the previous year. The Return on Capital Employed (ROCE) and Return on Equity (ROE) stood at 44.75% and 43.87% respectively in 2007. The company paid a total dividend of N2.50k as benefits to its shareholders for the 2007 financial year which was made up of 55kobo interim dividend and final dividend of N1.95k.



An analysis of the TO of NB in 2007 shows that its income of N111.75bn was derived from two major areas which are: Sales in Domestic Market (DM) and Sales in Foreign Market (EM). While DM accounted for a substantial 99.79% of the total income, EM accounted for an insignificant 0.21% of the income. The growth in TO was largely due to strong consumer demand, continuous improvement in product packaging and the launch of Star, Heineken and Amstel Malta in cans.



The company’s product line include: Star, Gulder, Heineken, Maltina, Amstel Malta, Legend Stout and Fayrouz.


Valuation/Analyst Recommendation

We maintain our forecast and valuation for NB as we are of the opinion that the company is in line with the forecast. In arriving at our fair value, we estimated TO, Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) and PAT for December 2008. We project a TO of N145.27bn, based on a growth of 30%, over the previous year.


We project EBITDA of N40.67bn based on EBITDA margin of 28% and a PAT of N24.63bn based on a PAT margin of 16.95%. We used 7.56bn Ordinary Shares which we expect to be in issue as at December, 2008. The Forward Earning Per Share (FEPS) generates N3.26.


We estimated the Dividend Per Share (DPS) of N3.09 (both interim and final) based on a dividend payout of 95%. Applying Enterprise Value EV/EBITDA multiple of 11.70x, a P/E multiple of 19x, we arrived at N62.92 per share using EV/EBITDA multiple and N61.87 per share using price earnings multiple. A simple average of the two values generates N62.39 which is our fair value. The forward earnings yield and dividend yield based on our fair value generate 5.22% and 4.96% respectively.



We therefore place a BUY on Nigerian Breweries Stock at the current market price both for capital appreciation and good interim and final dividends payment.

[Michael]

Originally Posted by billions

Proshare Articles
Nigerian Breweries Plc: Interim Results – Q2, 2008
Posted Tuesday, July 29, 2008
Equity Research Report:


Date: 28, July, 2008

Key Statistics

Sector Breweries

Date of Incorporation November 16, 1946

Date of Listing September 5, 1973

Year End December

No of Ordinary Shares 7,562,562,340

Capitalisation N 396,202,640,992.6

% of Market Capitalisation 3.86%

52‐Week High N 55.90

52‐Week Low N 39.10

YTD Return 4.08%

52‐Week Avg. Trade 3,363,053

Beta Value 1.51

Current EPS 3.01

Current PE 17.39

Fair Value: NGN 62.39

Current Price: NGN 52.39

Recommendation BUY



Gaining Grounds:

The unaudited Q2‘08 results of Nigerian Breweries Plc (NB) for the period ended 30 June, 2008 showed that its Turnover (TO) grew by 31.20% to N68.05bn, compared with N51.87bn in the corresponding period of 2007. Profit Before Tax (PBT) grew by 43.45% between 2007 and 2008 to N18.14bn from N12.65bn in the corresponding period of 2007. The tax provision which increased by 39.1% between 2007 and 2008 to N5.81bn from N4.17bn in 2007 brought about a Profit After Tax (PAT) of N12.34bn as against N8.50bn in 2007, representing a growth of 45.18%.

A cursory look at the company’s profit margins reveals a further improvement in the PBT margin in Q2 ’08 over Q2’07 and over the FY ’07 figure. The PBT margin increased marginally to 26.66% in Q2 ‘08 from 24.38% as at Q2 ‘07, and up from 24.95% as at the end of the financial year in December, 2007.


This shows that the company’s total cost as a percentage of TO stood at 73.34% slightly higher than 72.01% recorded as at in Q1 ’08, but down from 75.62% in the corresponding period of 2007. PAT Margin currently stands at 18.13% up from 16.39% in the corresponding period of 2007 and up from 16.95% as at FY ‘07.


The results also indicate that the percentage of the TO, PBT, and PAT in the Q2 ‘08 result to the Full Year Audited TO, PBT and PAT for the period ended December, 2007 are: 60.90%, 65.09% and 65.15%, respectively. This suggests that company has recorded improvements both in its top-line, and bottom-line in relation to the performance as at FY 07.



Looking at the Audited Accounts of NB in 2007, the cost of goods sold increased in 2007 over 2006 by 25.18% to N52.56bn. The increase was lower than the increase in TO which was up by 29.46% to N111.75bn, thereby leading to an increase of 33.50% in gross profit to N59.18bn. This resulted in a marginal increase in the gross profit margin from 51.36% in 2006 to 52.96% in 2007. The operating profit increased significantly by 61.41% in 2007 to N27.36bn. PAT increased significantly by 73.78% to N18.94bn from N10.90bn in the previous year. Both the capital employed and the shareholders’ funds increased by 18.06% (to N61.13bn) and 19.13% (to N43.18bn) respectively over the previous year. The Return on Capital Employed (ROCE) and Return on Equity (ROE) stood at 44.75% and 43.87% respectively in 2007. The company paid a total dividend of N2.50k as benefits to its shareholders for the 2007 financial year which was made up of 55kobo interim dividend and final dividend of N1.95k.



An analysis of the TO of NB in 2007 shows that its income of N111.75bn was derived from two major areas which are: Sales in Domestic Market (DM) and Sales in Foreign Market (EM). While DM accounted for a substantial 99.79% of the total income, EM accounted for an insignificant 0.21% of the income. The growth in TO was largely due to strong consumer demand, continuous improvement in product packaging and the launch of Star, Heineken and Amstel Malta in cans.



The company’s product line include: Star, Gulder, Heineken, Maltina, Amstel Malta, Legend Stout and Fayrouz.


Valuation/Analyst Recommendation

We maintain our forecast and valuation for NB as we are of the opinion that the company is in line with the forecast. In arriving at our fair value, we estimated TO, Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) and PAT for December 2008. We project a TO of N145.27bn, based on a growth of 30%, over the previous year.


We project EBITDA of N40.67bn based on EBITDA margin of 28% and a PAT of N24.63bn based on a PAT margin of 16.95%. We used 7.56bn Ordinary Shares which we expect to be in issue as at December, 2008. The Forward Earning Per Share (FEPS) generates N3.26.


We estimated the Dividend Per Share (DPS) of N3.09 (both interim and final) based on a dividend payout of 95%. Applying Enterprise Value EV/EBITDA multiple of 11.70x, a P/E multiple of 19x, we arrived at N62.92 per share using EV/EBITDA multiple and N61.87 per share using price earnings multiple. A simple average of the two values generates N62.39 which is our fair value. The forward earnings yield and dividend yield based on our fair value generate 5.22% and 4.96% respectively.



We therefore place a BUY on Nigerian Breweries Stock at the current market price both for capital appreciation and good interim and final dividends payment.

Now that you've told passed on Proshare's analysis, tell us the Important one. Analysis from Billions "bedsheet"

[billions]

Originally Posted by Michael

Now that you've told passed on Proshare's analysis, tell us the Important one. Analysis from Billions "bedsheet"

I don dey combine spreadsheet with my bedsheet...i wan go technical like hispy99.

I agree with d above analysis...the expected "solid" dividend shd generate a moderate price appreciation(abt N65).

The EPS is abt 3.60k.....if d market shd be able to recover fully,i expect d stock to do better than N65. PE ratio at 65 naira is abt 18.

The PAT i used is 27.5b naira...it is somehow high but i expect more people to get drunk as we move closer to Dec.

[Babs_O]

Originally Posted by billions

I don dey combine spreadsheet with my bedsheet...i wan go technical like hispy99.

I agree with d above analysis...the expected "solid" dividend shd generate a moderate price appreciation(abt N65).

The EPS is abt 3.60k.....if d market shd be able to recover fully,i expect d stock to do better than N65. PE ratio at 65 naira is abt 18.

The PAT i used is 27.5b naira...it is somehow high but i expect more people to get drunk as we move closer to Dec.

That is how we drank STAR to push the price up in 2001. But with the country doing more trading than manufacturing and the productive sector shrinking (discounting oil production) the masses may not be able to afford plenty of drinks this year. However pray the power situation and productivity will improve before the end of the year.

[Michael]

Originally Posted by billions

I don dey combine spreadsheet with my bedsheet...i wan go technical like hispy99.

I agree with d above analysis...the expected "solid" dividend shd generate a moderate price appreciation(abt N65).

The EPS is abt 3.60k.....if d market shd be able to recover fully,i expect d stock to do better than N65. PE ratio at 65 naira is abt 18.

The PAT i used is 27.5b naira...it is somehow high but i expect more people to get drunk as we move closer to Dec.

Thanks for the Joint Task Force of bedsheet & spreadsheet Analysis. I will once again add it to my shopping cart. I lost owned NB in 2003.

[hispy99]

Latest Market Info
NB: PAYS INTERIM DIV
NIGERIAN BREWERIES PLC. INTERIM DIVIDEND N1.00 PER SHARE

C/DATE 9TH OCTOBER 2008

P/DATE 17TH OCTOBER 2008.
NIGERIAN BREWERIES (NB)

as of 17/09/2008

[billions]

Originally Posted by hispy99

Latest Market Info
NB: PAYS INTERIM DIV
NIGERIAN BREWERIES PLC. INTERIM DIVIDEND N1.00 PER SHARE

C/DATE 9TH OCTOBER 2008

P/DATE 17TH OCTOBER 2008.
NIGERIAN BREWERIES (NB)

as of 17/09/2008

This company dey try sha.An interim dividend of 55k and a final dividend of 195k was paid in 2007.

We shd be expecting a final dividend above 220k in 2008.

Well done NB.

[hispy99]

Originally Posted by billions

This company dey try sha.An interim dividend of 55k and a final dividend of 195k was paid in 2007.

We shd be expecting a final dividend above 220k in 2008.

Well done NB.

Kudos to all those drinking gulder, star and maltina