Nigerian Breweries Reports N479.77bn Revenue for H1 2024

…Faces net loss due to FX issues

Samuel Mobolaji

Nigerian Breweries PLC has recorded strong revenue of N479.767 billion for its half-year period ended 30 June 2024.

The unaudited results, which were released to the Nigerian Exchange Group (NGX), showed that revenue grew by 72.9 per cent year-on-year to N479.767 billion as against N277.419 billion in H1, 2023, which, according to management, was driven by strategic pricing, innovation, and volume growth.

Also, the cost of sales up by 93.9 per cent to N320.083 billion from N165.094 billion in 2023, while gross profit for the Company stood at N159.684 billion compared to N112.325 billion in 2023.

However, Nigerian Breweries declared a net loss of N85.199 billion in H1, 2024 results, driven by a significant net loss on FX transactions amounting to N112.27 billion.

Speaking on the result, managing director/CEO of Nigerian Breweries, Mr Hans Essaadi said, “In the six months ended June 30, 2024, Nigerian Breweries demonstrated resilience and is on the path to recovery as seen in the results delivered despite the challenging external environment characterized by high inflation and heightening operating costs.”

According to Essaadi, our revenue grew by 73 per cent in the half-year compared to the same period in 2023. The growth was driven by strategic pricing, innovation volume growth, and market recovery. Cost of sales, distribution, and admin expenses increased by 46 per cent, largely due to inflationary pressure and forex devaluation impacting imported materials. We also continue to invest in our brands and categories and support the recovery of the market.

He disclosed that the company is in the process of initiating a rights issue to raise up to N600 billion in additional capital to restore the business to profitability and enhance operational and financial stability as part of its resilient and forward-thinking strategy.

“The funds raised will be used to eliminate our foreign exchange-denominated debts and reduce our local debts, thereby mitigating our exposure to the continuing economic challenges. Through our cost-saving and other efficiencies initiatives, we recorded a 34 per cent increase in operating profit, signalling the resilience and strength of our operations,” Essaadi explained.

He added, “We are conscious of the continued challenging operating environment with double-digit inflation and pressured consumer income spending. However, we continue to focus on our strategy to deliver value to our shareholders while contributing to the country’s economic development.”

Speaking on behalf of the board, legal director and company secretary, Uaboi Agbebaku, assured that “the Board remains confident in our long-term strategy to deliver value to our shareholders and re-affirms the Company’s enduring commitment to Winning with Nigeria through people development, strategic innovation, operational efficiency, and community impact.”