Nigerian Breweries Plc. (NB) benefitted from a sharp rebound in third quarter sales despite having a slow start to the year, with revenues down by c. 11% YoY as at H1:2020. In Q3:2020 however, revenue jumped by 25.56% to NGN82.22bn from NGN65.49bn in 9M:2019 – this presents the highest third quarter revenue in over five years, beating its 5-year third quarter average of NGN66.63bn. This comes
as a positive surprise as we had envisaged poorer sales especially because Q3 is characteristically the worst quarter for the brewers. Like that of its competitors (GUINNESS and INTBREW), we opine that NB’s revenue growth in Q3 fed off from the gradual resumption of on-trade sales channels (bars, restaurants and clubs). Cumulatively however, at NGN234.04bn, 9M:2020 revenue is still 70pbs less than the NGN235.68bn recorded in the corresponding 9M:2019 period.
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