Nigerian Breweries Plc has assured existing and prospective investors of sustainable growth despite the economic challenges facing the country.
The company’s management led by the Managing Director / Chief Executive Officer, Hans Essaadi, gave the assurance while briefing the media on the company’s financial and operational performance for the year ended December 31, 2024.
Speaking ahead of its 79th Annual General Meeting (AGM) Essaadi said, the industry was not exempted from the macroeconomic challenges, which had impacted the cost of doing business and profitability.
According to him “we recorded a modest growth in the market, driven mainly by price increases aimed at mitigating the consistent increase in input costs. The company generated N1.1 trillion in revenue for the financial year, representing an 81% increase from the previous year’s revenue of N599.5 billion. The N1.1 trillion revenue marrks a significant milestone for us, despite the challenges we faced”.
Essaadi noted that cost of goods sold rose by 98%, driven by high inflation and the impact of the Naira devaluation. “Despite these challenges, our operating profit grew by 59%, supported by disciplined cost management.”
However, the company recorded a net loss due to the heavy impact of the economic challenges. as a result, the board of directors is unable to recommend any dividend for the second consecutive year,.
Despite the challenges, Essaadi expressed confidence in the company’s ability to overcome them and deliver sustainable growth. “We are committed to our strategy and are taking decisive actions to address the challenges and capitalize on opportunities,”
Mr. Uaboi Agbebaku, Company Secretary/Legal Director discussed the outcome of the company’s business recovery plan. “At the start of the year, we took decisive actions to deal with the economic and business realities,” he said.
The plan aimed to restore the company’s profit and loss account, as well as its balance sheet. The business recovery plan was designed to future-proof our business.
Agbebaku explained, that a key pillar of the plan was the rights issue, which was well-supported by our shareholders. The rights issue raised N548.7 billion, achieving a 91.6% success rate.
The Securities and Exchange Commission (SEC) approved the allotment of 20.71 billion new shares on December 11, 2024, this paved the way for the company to access the funds raised and settle its foreign and local debt obligations.
As a result, Heniken International, the parent company’s holdings in Nigerian Breweries Plc, increased from 56% to 72.9%. Agbebaku also highlighted that Nigeria has the lowest selling price of beer in the world.
Commenting on the financial statements, the company Finance Director, Mr. Bermabdus A Wessels Boer, highlighted the impact of higher interest expenses and devaluation of the Naira. “We experienced a 34% increase in Net Finance Costs, which rose to N253 billion, this had a significant impact on our bottom line, pushing up our Net loss by 36% to N145 billion.”
Boer noted that despite the challenges, the company remains committed to taking decisive actions to overcome them. “While some challenges remain, especially with regards to debt level and interest rate burden, we are unwavering in our commitment to addressing these issues,” he said.
To address the interest rate burden, Boer disclosed that the board will be seeking shareholders’ approval to amend the borrowing clause in the company’s articles of association. “This will give us more flexibility in sourcing funds from alternative market sources at more competitive interest rates,” he explained.
Concerning the performance of its brands Mr. Emmanuel Oriakhi, Marketing Director, highlighted the company’s commitment to innovation. “Innovation have been the way to the success of our brands through the decades. We launched the sleek and stylish Heineken larger 45cl bottle, which contributed 15% to the brand’s basket,” he said.
The company also introduced a draught offering for Legend Extra Stout, as well as new flavors for the brand. “We underlined the uniqueness of Legend brand with the launch of Legend Twist in Lemon, ginger, and pineapple flavors, catering to the needs of the next generation of stout consumers,” Oriakhi explained.
Other new launches included a sleek and stylish 33cl can format for Desperados and Amstel Malta. “Our iconic Star lager brand was also relaunched in a bold new label,” Oriakhi said.
Additionally, the company reintroduced Ace Roots, a low-sugar bitters that combines African herbs, spices, and fruits. “Ace Roots is a unique product that perfectly combines a blend of true African herbs, spices, and fruits,” Oriakhi noted.
On Nigeria Breweries sustainability initiatives, Mrs. Sade Morgan, Corporate Affairs Director and Mr. Federico Agressi, Sales Chain Director. highlighted the company’s sustainability initiatives, which include key projects such as the N168 million invested in a skills acquisition center in Kakuri, Kaduna State, and a cassava milling plant in Awo-Omamma, Imo State.
“We are committed to driving impactful initiatives that benefit both our communities and the environment through our Brew a Better World (BaBW) sustainability framework,” said Mr. Federico Agressi, Sales Chain Director.
Agressi noted that the company made significant progress in its net zero emissions journey. “In the outgone year, we set a new standard for environmental stewardship with the installation of an additional 2.5 megawatt peak power solar at our Ibadan brewery,” he said.
The company also commenced the commissioning of solar power systems at its Lagos and Aba breweries. “We signed a transformational renewable energy contract that will supply 100% renewable electricity through the TCN grid, initially to our Lagos and Ama Breweries, with plans to extend to other locations in the coming years,” Agressi explained.
Additionally, the company successfully commissioned a dedicated boiler to turn biogas from the wastewater treatment plant at its Ama Brewery. “This is the first of its kind in Heineken in the Africa and Middle East region,” Agressi noted.
“We also have a seasoned dedicated boiler to burn biogas, which is currently in its final stage of testing at our Ibadan Brewery, with plans to make it operational in the course of 2025.”
Mrs. Grace Omo-Lamai discussed the importance of employees to the company’s success. “Our employees have remained the key drivers of our success over the years through their dedication, hard work, and unwavering commitment,” she said.
Omo-Lamai emphasized that the growth and well-being of employees are critical to fostering a positive work environment. “The growth and well-being of our people are therefore critical to fostering a safe, caring, and inclusive environment,” she explained.
During the year, the company implemented several initiatives to support employee growth and development. “We implemented several initiatives, including leader-led engagement sessions to inspire, develop, and retain our talents,” Omo-Lamai said. “We also had capacity-building programs to develop high-performing teams, professional development training, and enhanced workplace policies that promote diversity and collaboration.”
These initiatives had a positive impact on employee satisfaction and morale. “All of these and more translated to improved climate survey results across all dimensions, reflecting higher satisfaction and morale within our workforce,” Omo-Lamai noted.
The company also benefits from the Heineken talent exchange program. “As with previous years, we continue to benefit from the Heineken talent exchange program, with some of our people currently undergoing long-term and short-term assignments across the Heineken world,” Omo-Lamai said. “This equips them with invaluable global experience that they will bring back to our company and the nation.”
Mrs. Philomena Aneke, Digital and Technology Director commented on the company’s digital transformation journey. “We continue on our journey to becoming the best-connected brewer and future-fitting our business,” she said.
Aneke highlighted the company’s digital initiatives, which include the digitization of processes related to the root-to-consumer value chain. “Our digital initiative included the digitization of processes, as well as the simplification and automation of some other processes and activities,” she explained.
These initiatives have led to improved data quality, enhanced operational efficiency, and increased organizational resilience. “By digitizing our processes and simplifying our operations, we have been able to improve our overall efficiency and resilience,” Aneke noted.
Photo Caption: L-R: Finance Director, Nigerian Breweries Plc, Ben Wessels Boer; Company Secretary/Legal Director, NB Plc, Uaboi Agbebaku; Digital and Technology Director, NB Plc, Phil Aneke; Managing Director, NB Plc, Hans Essaadi; Corporate Affairs Director, NB Plc, Sade Morgan; Supply Chain Director, NB Plc, Federico Agressi; Human Resource Director, NB Plc, Grace Omo-Lamai and Marketing Director, NB Plc, Emmanuel Oriakhi during the 2025 Pre-Annual General Meeting of the company held in Lagos.
