International Breweries records N1.65bn half-year loss

International Breweries records N1.65bn half-year loss

International Breweries records N1.65bn half-year loss

International Breweries Plc has reported a loss after tax of N1.657bn for 2016 half-year.

This figure was contained in its financial statements submitted to the Nigerian Stock Exchange on Thursday.

The result showed a drop from its N420.8m profit after tax recorded in June last year.

Its turnover also slid to N5.224bn in 2016 from N6.873bn recorded last year.

Similarly, Ashaka Cement Plc reported a 54 per cent drop in profit for the year ended June 30, 2016.

The company’s profit after tax dropped to N1.63bn from N3.55bn recorded in the half-year result of 2015. Its revenue also slid to N7.665bn from N10.743bn.

The Nigerian equity market rebounded on Thursday after a three-day losing streak amid a turnaround across most key sectors.

On the global scene, European markets closed higher after the Bank of England cut interest rates by 25 basis points to 0.25 per cent, among a couple of economic stimulus measures. Asian markets also closed in the green, buoyed by a weakening Japanese Yen (positive for export) and a pick in oil prices following a drop in petrol inventory. The United States futures predicted a higher opening.

The oil and gas sector led the turnaround following strong bid for Total Nigeria Plc (8.06 per cent gain) and Mobil Oil Nigeria Plc (five per cent gain).

The consumer goods and industrial goods sector bounced off previous losses with Nigerian Breweries Plc (1.85 per cent gain), Guinness Nigeria Plc (1.07 per cent gain), PZ Cussons Nigeria Plc (2.89 per cent gain) and Lafarge Africa Plc (1.18 per cent gain) leading the gains.

The financial services sector however continued on the downtrend as Zenith Bank Plc (0.61 per cent loss) and Guaranty Trust Bank Plc (0.75 per cent loss) posted further losses.

Market breadth was neutral with 18 advances and 18 declines.

To this end, the analysts at Vetiva Capital Management Limited said, “We highlight that Thursday’s positive close came amid relatively thin market volumes. With this somewhat suggesting a lukewarm market sentiment, we see chances of a possible reversal in the ASI at week close.”

For the fixed market, the interbank call rate rose further in Thursday’s session, up 125 basis points to 20.83 per cent. At the foreign exchange interbank market, the naira depreciated by N4 to close at N315.06.

Following slightly lower yields from Wednesday’s primary market auction, the Treasury bills market turned bullish on Thursday as yields converged towards auction levels, down 41bps on average.

The most notable yield declines were observed on the 28 day-to-maturity (-216bps), 91DTM (-108bps), and 126DTM (-84bps) bills to close at 15.01 per cent, 15.34 per cent, and 16.73 per cent, respectively.

The bond market also traded bullish as yields moderated 19bps on average, driven by buoyant demand on the short end of the space. Particularly, yields on the 15.10 per cent Federal Government of Nigeria April 2017, 9.85 per cent FGN July 2017, and 9.35 per cent FGN August 2017 declined by 53bps, 31bps, and 26bps to close at 20.04 per cent, 21.10 per cent, and 20.96 per cent, respectively.

Source:© Copyright Punch Online