FY2024: Nigerian Breweries Revenue Crosses N1trn Mark, Returns To Profitability In Q4

Nigerian Breweries Plc, a foremost brewing company in Nigeria, has released its audited Group Financial Statements for the financial year end­ing December 31, 2024, recording an unprecedented and impressive reve­nue of N1.1 trillion.

This represents a massive 81 per cent increase on the N599.6 billion re­corded in the corresponding period of 2023.

A further breakdown of the audit­ed results revealed a significant 51 per cent growth in group gross profit from N212.6 billion in 2023 to N320 billion in 2024.

The operating profit equally grew significantly by 59 per cent from N44 billion to N70 billion during the peri­od despite the challenges of the huge increase in input costs.

Speaking on the results, Mr Hans Essaadi, Managing Director/CEO, Nigerian Breweries Plc, said the im­pressive year-on-year revenue growth was largely driven by strategic pricing initiatives, market expansion, success­ful innovations, and operational effi­ciencies.

”Despite macroeconomic head­winds faced by the company, group operating profit surged by 54 per cent, reflecting the success of cost manage­ment, process optimization and strong operational performance”, he noted.

He added that the 34 per cent in­crease in the net finance costs, and the 36 per cent increase in the net loss recorded by the company were driven by the rise in interest rates as well as the impact of the devaluation of the naira.

The net loss went up from N106.3 billion in the previous year to N144.9 billion.

According to a statement signed by the Company Secretary/Legal Direc­tor, Mr Uaboi Agbebaku, the company took some bold steps in 2024 to deal with the issues that impacted the net profit and to strengthen its financial position. The board obtained the sup­port of shareholders for the compa­ny’s business recovery plan including a successful Rights Issue.

Agbebaku disclosed further that the bold steps have started to yield positive results with the company demonstrating strong recovery and positive momentum in the last quar­ter of 2024.

“In the fourth quarter, revenue grew by 89 per cent while operating profit increased by 145 per cent. No­tably, net finance costs went down by 75 per cent leading to a return to prof­itability in the quarter, the first time in two years.

The return to a positive net profit position marks a major step in the company’s journey towards long-term profitability and financial stability.

“It also reinforces the effectiveness of ongoing transformation initiatives. The proceeds from the right issues have been utilised to significantly reduce future currency risks and the board remains committed to main­taining the improved financial posi­tion,” he said.

While appreciating the sharehold­ers for their support on the Rights is­sue, he maintained that the company would continue to navigate the chal­lenges of the Nigerian business envi­ronment to bring about profitability for the business.