National Breweries Plc (LUSE: NATBREW) reported a 40% year-on-year decrease in net profit to K28 million in financial year (FY) 2014. Earnings per Share (EPS) came in at K0.44 (K0.74 in 2013):
The decline in net profits was primarily driven by:
National Breweries experienced tepid revenue growth of 1% year-on-year to K398 million in FY 2014:
Commissioning problems meant that the company was not able to fully supply its customer base with their opaque beer products. Competition from cheaper and illicit bulk offering particularly impacted top line performance in the northern part of the country.
National Breweries’ stock price closed the year at K12, up 18% in 2014.
No dividend was recommended for FY 2014.
In their outlook for 2015, the company said:
We look ahead with confidence in the country’s potential to register growth and development for its people. This is on the back of a steady growth of the GDP rate. Government’s business agenda and continued investment in infrastructure projects will continue to spur economic activity and spur employment creation. We stand as a long term investment partner with the Government of the Republic of Zambia and the community.
Trying to decipher this puzzle that is Zambia by using a variety of publicly available data (structured and unstructured) in conjunction with my own skill/experience. * * *