Golden Brew Leads Guinness, Others In Return On Investments, Brewers’ Valuation Hits N821bn

Majority of the Nigerian brewing companies in the stock market recorded an impressive return on investments for their shareholders in the first half (H1) of 2023.

Nigerian Breweries, Guinness, International Breweries and Golden Brew shareholders were rewarded with N78.85 billion gain for holding their investments in the brewers. 

However, Champion Brew investors were not so lucky, according to the analysis of the industry’s H1 stock market activities by Prime Business Africa.

But this didn’t stop the combined market valuation of the alcoholic and non-alcoholic producers from rising to N821.17 billion market capitalisation from N743.25 billion within six month 

In a breakdown of their stock performance, PBA gathered that Golden Brew was the best performer, followed by Guinness, with International Breweries closely behind, while Nigerian Breweries was next. 

Golden Brew 

The investments of shareholders of Golden Brew rose significantly by 106.17 per cent from January to June, making the firm the best-performing brewer in the stock market. 

• Prime Business Africa learnt that the 106.17 per cent growth in investment value represented N881.21 million gain for Golden Brew shareholders. 
• The increase in investment value also raised Golden Brew’s market valuation, making the company a billion-naira equity, as it closed H1 with N1.71 billion market capitalisation, above the N829.98 million valuation at the start of the year. 
• Although the 106.17 per cent appreciation was enough to hand shareholders N881.21 million gain, but it wasn’t sufficient to change the position of Golden Brew on the list of the most valuable brewer in the stock market, as it closed the period in the fifth position. 

Guinness

Guinness Nigeria was the second-best performing brewer in the stock market within the review period, as its shareholders gained N23.43 billion. 

• Investors holding the company’s shares saw the value of their investments rise by 15.4 per cent within six months, as demand for Guinness pushed its share price to N80, up from N69.30 kobo. 
• Consequently, the market capitalisation of Guinness was lifted from N151.79 billion to N175.23 billion in the first half of this year. 
• Thanks to the 15.4 per cent increase in shareholders’ investment value, Guinness retained its position as the second most valuable brewer in the equity market.

International Breweries 

Between January to June this year, International Breweries’ investors recorded 10.63 per cent growth in the value of their investments. 

• This was due to International Breweries’ shares being one of the most sought-after equities on the brewer’s floor of the stock market. 
• The demand made the cost of International Breweries’ shares rise from N4.70 kobo per share to N5.20 kobo per share, leading to shareholders earning N13.43 billion during the period. 
• Likewise, International Breweries profit from the surge in demand, as it boosts the market valuation of the firm to N139.68 billion, from N126.25 billion. 
• Despite the rise, International Breweries remained the third most valuable alcoholic and non-alcoholic firm in the Nigerian bourse. 

Nigerian Breweries 

With a 9.75 per cent rise in shareholders’ investment value, Nigerian Breweries closed the first half of 2023 as the fourth best-performing brewer in the equity market. 

• Shareholders were rewarded for their faith in the company with N41.10 billion gain, as the capital market saw Nigerian Breweries’ shares as an investable asset. 
• Also, Nigerian Breweries crowned the performance with an increase in its market capitalisation, which settled at N462.42 billion at the end of H1, compared to the N421.32 billion the firm valued in early January. 
• The rise in the company’s market capitalisation helped Nigerian Breweries retain its position as the most valuable brewer in the Nigerian stock market. 

Champion Brew 

Shareholders of Champion Brew closed the first six months of the year disappointed, as the value of their investment fell by -2.18 per cent. 

• The decline resulted in a loss of N939.53 million in the total investments held by shareholders in Champion Brew, which is the fourth most capitalised brewer in the stock market. 
• This indicated that capital market investors preferred Nigerian Breweries, International Breweries and Golden Brew as investable asset compared to Champion Brew. 
• Due to the depreciation in the demand for Champion Brew’s shares, the company’s capitalisation also dropped to N42.12 billion, slightly from N43.06 billion valuation.

Fakoyejo Olalekan

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