NB Plc returns to profitability, records historic N1.1trn revenue in 2024

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Nigerian Breweries Plc, the leading brewing company in Nigeria, has announced its audited Group Financial Statements for the 2024 fiscal year, reporting record-breaking revenue of N1.1 trillion.

This marks an unprecedented 81 per cent surge compared to the N599.6 billion recorded in the corresponding period of 2023.

A detailed analysis of the audited financial results highlights a substantial 51 per cent increase in group gross profit, rising from N212.6 billion in 2023 to N320 billion in 2024.

Additionally, the company recorded a 59 per cent growth in operating profit, reaching N70 billion from N44 billion, despite facing significant cost pressures from escalating input expenses.

Commenting on the results, Mr. Hans Essaadi, Managing Director/CEO of Nigerian Breweries Plc, attributed the impressive year-on-year revenue growth to strategic pricing initiatives, market expansion, successful product innovations, and enhanced operational efficiencies.

“Despite the 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,” Essaadi stated.

However, he acknowledged that rising interest rates and the impact of naira devaluation significantly affected the company’s net finance costs and overall net loss. Net finance costs rose by 34 per cent, while the company’s net loss increased by 36 per cent, climbing from N106.3 billion in 2023 to N144.9 billion in 2024.

In response to these financial hurdles, Nigerian Breweries Plc undertook decisive actions to strengthen its financial position.

According to a statement signed by the Company Secretary/Legal Director, Mr. Uaboi Agbebaku, the company’s Board secured shareholder support for a comprehensive business recovery plan, which included a successful Rights Issue.

Agbebaku disclosed that these strategic measures have started yielding positive results, with the company demonstrating a strong recovery and positive momentum in the last quarter of 2024.

“In the fourth quarter, revenue grew by 89 per cent, while operating profit soared by 145 per cent. This return to a positive net profit position marks a major milestone in the company’s journey towards long-term profitability and financial stability. It also underscores the effectiveness of our ongoing transformation initiatives,” Agbebaku said.

He further explained that proceeds from the Rights Issue have been strategically utilized to mitigate future currency risks, reinforcing the company’s commitment to maintaining its improved financial position.

Expressing appreciation for shareholder support, Agbebaku emphasised that Nigerian Breweries Plc remains committed to navigating the complexities of the Nigerian business environment to drive sustainable profitability.