NB | Nigerian Breweries Plc Company Update 2023 - We see scope for an improved H2

NB will likely remain in a loss position in FY'23, primarily due to the significant impact of naira devaluation on its huge FX-denominated payables. However, we like the company's aggressive expansion of market footprint, and current drags are likely to create long-term entry opportunities for patient capital. We retain our HOLD recommendation on the ticker with an unchanged 12-month TP of N43.10.

We expect NB to stage an H2'23 earnings rebound after the FX-induced pullback in H1'23. This recovery will likely reflect higher prices and volumes, especially in the seasonally strong Q4. Additional factors likely to support sales include the company's intensified digital initiatives and unique customer engagements. In H1'23, sales channels linked to the initiatives – B2B platform (+29.0% YoY), front-line sales (+38.0% YoY), and customer service/telesales (+32.0% YoY) – accounted for c.52.0% of revenue. Aided by a strong H2, we project FY'23 revenue to increase by 7.1% to 589.7 billion.


Download (373.98 KB)


Instagram - https://instagram.com/CardinalStoneNG
CardinalStone is a full service investment banking firm with a vision to build a world class investment banking firm of African origin; operating out of Lagos, Nigeria. The firm was incorporated in April 2008 and began operations in June 2008. CardinalStone is duly registered with the Securities & Exchange Commission in Nigeria to carry on business as an Issuing House, Fund Manager and Broker/Dealer The Firm's activities are carried out across five business units: Asset Management, Investment Banking, Private Equity, Securities Trading and the Business Support Group.
Latest Reports