Nigerian Breweries FY 2023: The Good, Bad and Ugly
4 Customs Street: 19 Feb 2024
Welcome to this week’s edition of 4 Customs Street, our weekly newsletter on the stock market.
The newsletter is divided into two parts:
Green White Green is focused on the Nigerian stock market.
Star-Spangled Banner is focused on the US stock market
Green White Green Last Week
Fidelity Bank’s board of directors has extended the employment contract of the firm’s GMD/CEO, Dr. Nneka Onyeali-Ikpe, from 2024 to 2026.
Access Holding’s board of directors announced the appointment of Bolaji Agbede as Acting Group CEO following the demise of Hebert Wigwe. Until her appointment, Agbede was the Executive Director (ED) in charge of business support.
NB FY 2023: the good, bad and ugly
Nigerian Breweries last week released its audited results for the financial year ended December 2023. Here are key points from the numbers.
The good
The company grew its revenue by 9% due to what it described as a positive price mix. Revenue rose from N550 billion in 2022 to N599 billion in 2023.
The bad
Operating profit fell by 15% due to higher input costs and one-off reorganisation costs, despite strong and aggressive cost savings and other efficiency measures.
It dipped from N51.7 billion in 2022 to N43.9 billion in 2023.
The ugly
The company recorded a net loss of N106 billion during the year. This was due to the impact of the devaluation of the naira, which resulted in a foreign exchange loss of N153 billion.
The firm’s retained earnings were wiped out totally, so no dividend for shareholders.
Green White Green This Week
Nigerian Breweries will have an earnings call to discuss the firm’s audited FY 2023 numbers.
MTN Nigeria will hold a board meeting on Thursday to consider the firm’s audited FY 23 numbers.
Star-Spangled Banner Last Week
Chip maker Nvidia became the third largest stock by market capitalisation in the United States. The stock rose by 239% last year, but is up by 50.7% this year.
Bitcoin crossed the $50,000 mark for the first time since late 2021.
Star-Spangled Banner This Week
This week is fairly interesting as a few big names will release their quarterly earnings.
In the retail space, Walmart and Home Depot will drop theirs. A huge chunk of spending in the US is on retail. Investors and analysts will want to know what consumers are buying and if they have cut or maintained spending.
Retail sales in the US fell by 0.8% M/M to $700.3 billion in January, more than the 0.1% decline expected.
Nvidia, which is one of the hottest stocks (in terms of price appreciation), will drop its quarterly earnings on Wednesday. If the earnings beat expectations, the stock could rise further.
Analysts polled by FactSet expect Nvidia to earn an adjusted $4.59 a share (up 422% year-over-year), on sales of $20.37 billion (up 237%) in the quarter ended January 28. That would be the company's third straight quarter of triple-digit percentage growth in sales and earnings.
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