Nigerian Breweries Jumps to Record on Profit Bets: Lagos Mover

Dec. 13 (Bloomberg)-- Nigerian Breweries Plc (NB), the country’s biggest brewer by market value, gained for a sixth day and rose to the highest on record on bets its profit will increase in 2013.

The stock gained 4.8 percent to 162 naira by the close in Lagos, Nigeria’s commercial capital. The price is the highest since Bloomberg began compiling data on the stock in 2002. More than 684,000 shares or 47 percent of the three-month moving average traded.

Many investors expect better results in 2013 after interest costs on loans used to finance the company’s recent expansion reduced this year’s profit, Efemena Esalomi, an analyst at Lagos-based Vetiva Capital Management Ltd., said today by phone. “We have seen sales growth, what we are looking forward to next year is growth in profit,” she said.

First-half revenue rose 24 percent to 136.5 billion naira ($865.6 million) from a year earlier, while net income increased 2 percent to 19.38 billion naira, the company said July 25.

Nigerian Breweries, a unit of Heineken NV (HEIA), last year acquired Sona Systems Associates Business Management Ltd. and Life Breweries Co. to expand its capacity and add to its brands. Its shares have risen 71.6 percent this year, compared with a 33.4 percent rise in the Nigerian Stock Exchange All-Share Index.

To contact the reporter on this story: Vincent Nwanma in Lagos at vnwanma@bloomberg.net

To contact the editor responsible for this story: Dulue Mbachu at dmbachu@bloomberg.net

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