The National Lottery Regulatory Commission (NLRC) briefly sealed Nigerian Breweries Plc’s Headquarters premises in Lagos and two of its offices in Abuja.
In a notice to the Nigerian Stock of Exchange (NSE), the pioneer and largest brewing company in Nigeria said the NLRC sealed its Abuja premises on November 13, 2018, and November 12, 2018, respectively.
Although, the offices in Lagos and Abuja have been subsequently unsealed by the NLRC on November 13, 2018.
Prior to this, the Nigeria Employers’ Consultative Association (NECA) on behalf of its member companies (including Nigerian Breweries Plc) had instituted an action in court against the Commission challenging the powers of the Commission to regulate consumer sales promotion in the country, as they form part of the marketing and sales activities of the concerned companies.
The court action is pending at the Court of Appeal.
The NLRC had demanded from the Nigerian Breweries, certain disputed fees on the Company’s consumer sales promotions, a demand the Company had resisted on the basis of the pending court action.
Nigerian Breweries Plc had released its Q3 2018 interim financial results for the period ended 30th September 2018. Revenue for the company dropped from ₦270 billion in 2017 to ₦254 billion in the year under review. This represents a 5.62% decrease year on year.
Profit Before Tax also dropped from ₦34 billion in 2017 to ₦22 billion. This represents a 34.7% decrease year on year. Profit After Tax likewise dropped from ₦24 billion in 2017 to ₦14 billion. This represents a 38.4% decrease year on year.
The Earnings Per Share also dropped from ₦300 in 2017 to ₦185 in 2018. This represents a 38.3% decrease year on year. Nigerian Breweries Plc is currently trading N82.50 on the floor of the NSE.