International Breweries projects N1.93bn profits in Q1 2013

By NKIRUKA NNOROM

The year 2013 may end well for International Breweries Plc, the brewers of Trophy beer and Betamalt, a non-alcoholic drink, going by the unaudited figures for first of the year already available to the investing public.

Specifically, the company said it expects to deliver N1.93 billion profit for the first quarter ended 31st March, 2013, which represents 389.79 percent growth over N387.49 million projected in equivalent period of 2012.

The company’s unaudited financial statement made available to the Nigerian Stock Exchange, NSE, showed that the turnover is projected at N17.67 billion, while cost of sales is expected to be in the region of N8.43billion.

This stood for 513.5 percent and 447.4 percent increase over N2.88 billion and N1.54 billion projected in the same period of 2012 respectively.

The company also targets profit before tax and exceptional items of N2.84billion, which translates to 633.85 percent growth over N387.49 million in 2012. International breweries said it expects to pay N909.56 million tax within the period.

Meanwhile, analysts at Proshare opined that the company stands the chance of hitting the projected profit and turnover

“We have reviewed the forecast against its believability index, relying on previous performances against forecast; to confirm that International Breweries Plc has a 22 percent chance of achieving or exceeding its PAT forecast and a –one percent chance of delivering on its turnover projections for the period in view.

This weights fall within the ‘most believable’ forecast range for quoted companies in the sector,” the analysts said in a review of the financials.

For DN Tyre & Rubber which also released its results, it sees a gloomy second quarter performance for period ended 31st March, 2013.

Though the turnover is expected to hit N152 million, both profit before tax and profit after tax are expected to drop to N85.501 million, probably due to a tax holiday.

The company also said it expects operating expenses to stand at negative N68.501 million, while financial charges will decline to N41.45 million during the same period.

International Breweries is a Nigeria-based company active in the brewing industry.

The Company is primarily engaged in the brewing, packaging and marketing of beer and non-alcoholic malt drinks.  International Breweries Plc is a subsidiary of Brauhaase International Management GmbH, which holds a 50.42 percents stake.