Nigerian Breweries records 22% profit decline, blames new excise duty

Nigerian Breweries says it recorded a 22 percent decline in profit after tax for the half year ended June 30.

This is according to the company’s unaudited result submitted to the Nigerian Stock Exchange (NSE) for the period under review.

NAN reports that the company posted a profit after tax of N18 billion compared to N24 billion recorded in the corresponding period of 2017.

Profit before tax dropped by 19 percent from N34 billion in 2017 to N28 billion in June 2018 while revenue dipped by five percent to N173 billion from N181 billion.

Overall operating activities declined by 20 percent from N39 billion in 2017 to N32 billion in 2018.

Uaboi Agbebaku, secretary and legal adviser, Nigerian Breweries, linked the company’s poor performance to the new excise duty introduced by the federal government.

Agbebaku said the new excise duty regime and a higher rate of beer had an impact on “affordability” and consumption pattern during the reviewed period.

Kemi Adeosun, minister of finance had submitted a proposal to President Muhammadu Buhari to increase excise duty on tobacco products and alcoholic beverages.

Adeosun had said the reviews will help boost government’s fiscal revenues. The new excise duty regime went into effect on June 4.