Bloomberg News

Nigerian Breweries Gains for Third Day as Profit Increases

July 25, 2012

Nigerian Breweries Plc (NB), the country’s biggest brewer by market value, advanced for a third day after reporting profit increased in the second quarter.

The stock gained 0.9 percent to 117.50 naira by the close in Lagos, its highest since at least January 2002.

Net income rose to 19.38 billion naira ($121 million) from 18.96 billion naira a year earlier, the Lagos-based company said today in a statement published on the website of the Nigerian Stock Exchange. Revenue jumped 24 percent to 136.5 billion naira. Bombings and attacks by Boko Haram Islamists are curbing beer sales in northern Nigeria, Chief Executive Officer Nicolaas Vervelde said on May 10.

“It’s a slight improvement over its performance last year, but it’s good since it is not a decline,” David Adonri, chief executive officer of Lambeth Trust and Investment Company, said by phone from Lagos today. “Despite the challenges they are facing in the north, they are still able to improve on their profit, and that’s why the market is reacting positively to it.”

Nigerian Breweries shares have risen 24 percent this year, compared with an 12 percent increase in the Nigerian Stock Exchange All-Share Index over the same period.

To contact the reporter on this story: Vincent Nwanma in Lagos at vnwanma@bloomberg.net

To contact the editor responsible for this story: Peter Branton at pbranton@bloomberg.net


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