Data from Nigerian Breweries third quarter results as cited by FBN Quest indicates that the firm has tripled its debt between this time last year and now to N72.8bn.

According to the firm’s nine-month report card, a loss of N2.2bn was recorded before tax in the period under view.

The report said, “Nigerian Breweries' Q3 2019 pre-tax loss of -N2.2bn was primarily driven by a surge in borrowing costs.

“The company's total debt more than tripled y/y to N72.8bn.

“NB's performance was also affected by the change in excise regime.

“Beer volumes grew by low-single digit y/y, driven by the premium segment but this was eroded by a 30 per cent increase in excise tax charge.”

The financial research firm noted that NB’s shares have also performed poorly on the floor of the Nigerian Stock Exchange.

It noted that ‘NB’s shares has shed -46 per cent.’

FBN quest said in its report that it has a negative medium term rating on the beer industry in the country.

In a 2018 analysis by PWC before the June 4 commencement of the new tax regime, it said the government had given fair consideration and planning time to the firms in the alcohol sector.

The tax was designed to increase within a three year period from 2018 to 2020.

The government’s reason for increasing cost in that sector of the economy include the need to raise revenue, reduce health hazards and align with similar tax impositions by the Economic Community of West African States members.

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