Nigerian Breweries Posts N1.1trn Revenue Amidst Economic Challenges

Ahead of Nigerian Breweries Plc 79 Annual General Meeting (AGM) the company has announced a significant increase in revenue, reaching N1.1 trillion for the financial year ended December 31, 2024.

This represents an 81% growth from the company’s 2023 revenue of N599.5 billion.

According to the company’s Managing Director, Hans Essaadi, the impressive revenue growth was achieved despite the challenging economic environment, characterized by high inflation rates and the devaluation of the Naira.

The cost of goods sold rose by 98%, driven by inflationary pressures and the impact of the Naira devaluation. However, the company’s operating profit grew by 59%, supported by disciplined cost management.

Net finance costs surged by 34% to N253 billion, mainly due to higher interest expenses and the foreign exchange impact on payable. This resulted in a net loss of N145 billion, representing a 36% increase from the previous year.

Despite the challenges, Nigerian Breweries demonstrated resilience through strategic adaptations, including a recapitalization of the company through a rights issue.

The company also increased local sourcing, innovation, and diversification through the acquisition of majority stakes in Distell Wines and Spirits Nigeria Ltd.

Looking ahead, Essaadi emphasized the company’s commitment to leveraging diversity, promoting equity, and embedding inclusion to create business value in a rapidly changing environment.