Nigerian Breweries Plc grew its 2023 third quarter revenue by 4.2% for the period ended September 30, amidst impact of finance costs on earnings.

The results showed a loss per share of N1.16 against loss per share of N0.49 that was recorded same period in 2022.

However, due to the higher net finance costs that was up by 49.5%. As a result, the nine months loss per share stood at N6.89 against N1.82 in 2022.

The performance of the brewer was deeply impacted by seasonal fluctuations and a combination of FX illiquidity and higher borrowing costs.

The revenue growth was supported by price increases on its products.
gross margin expanded by 236bps to 32.3% which is above 30.0% recorded in 2022, following the slower growth in cost of sales in the period.

While awaiting further clarification from management, market analyst believe the company’s efforts at reducing imports and shifting to locally sourced primary ingredients like sorghum, a key component in lager production, contributed to managing costs.

The company recorded an operating loss of N1.12 billion against N452.29 million in 2022, owing to the 12.4% increase in operating expenses.

Nigerian Breweries recorded a pre-tax loss of N10.32 billion in against pre-tax loss of N6.60 billion in 2022.

Following a N723.27 million tax credit in the period, the loss after tax was lower at N9.60 billion against loss after tax of N3.99 billion in

However, its expected that there will be revenue improvement during the peak-selling season, driven by higher demand and pricing.