- Nigerian Breweries shareholders lost N71.97 billion in the second quarter of this year, between August 9 and September 3, 2021
- The alcoholic company's market valuation declined by 16.5 percent in four weeks, as some shareholders sold of their investment in the company
- Revenue of Nigerian Breweries couldn't stop the investors from exiting and crashing its share value during the period under review
The month of August wasn't a good one for the management of Nigerian Breweries and their shareholders, as the company's market valuation declined.
Nigerian Breweries market value drops
During the second week of last month, Nigerian Breweries was valued at N455.82 billion as of August 9, 2021, by capital market authority, the Nigerian Exchange Group.
However, in the last four weeks, the alcoholic producer's total investment value is down by 16.5%, as Nigerian Breweries in now worth N383.85 billion, as at September 3, 2021.
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Profit-taking cost Nigerian Breweries' investors billions of Naira
Some Nigerian Breweries investors took out their funds from the brewer to protect their investment after the stock value of the firm stood at N57 per share in the first week of August.
As investors dumped their shares and took out their investments, the stock price of Nigerian Breweries deprecated to N48 per share by September 3, 2021.
The sell off by the outgoing investors cost other remaining Nigerian Breweries shareholders a whooping amount, as they lost N71.97 billion within four weeks.
Rising revenue fails to appease shareholders
This comes after the company released its financials for the second quarter of 2021, which showed that Nigerian Breweries significantly surpassed the N42.99 billion it generated during lockdown in Q2 2020, after posting N103.58 billion for Q2 2021.
However, the revenue growth wasn't enough to convince some shareholders from thinking their investment will go negative, hence, triggering a bearish period for Nigerian Breweries.
Nigerian billionaires are losing their fortune, but one isn't
In related news, Legit.ng had previously reported that Nigeria previously had four billionaires on the Forbes richest index, but the number is now down to three as Folorunsho Alakija drops from the list.
Alakija was the only female billionaire on the list, however, there are now only three men, Aliko Dangote, Abdulsamad Rabiu and Wale Adenuga.
But Dangote and Adenuga's wealth have been on a decline in the past few years, while Rabiu's fortune has been rising.