Nigerian Breweries crosses N1.1trn revenue mark

By Chukwuma Umeorah

Nigerian Breweries Plc has reported a revenue of N1.1 trillion for the 2024 financial year, representing an 81 per cent increase from the N599.6 billion posted in 2023 despite rising input costs.

A detailed breakdown of the audited financial results revealed a substantial 51 per cent growth in group gross profit, rising from N212.6 billion in 2023 to N320 billion in 2024. Similarly, the company’s operating profit surged by 59 per cent to N70 billion, up from N44 billion in the previous year. This impressive growth came in the face of escalating input costs and other macroeconomic challenges that have affected the manufacturing sector.

Commenting on the company’s performance, Managing Director/CEO, Nigerian Breweries, Hans Essaadi, attributed the robust revenue growth to a combination of strategic initiatives. “The impressive year-on-year revenue growth was largely driven by strategic pricing initiatives, market expansion, successful innovations, and operational efficiencies,” he said.

He further emphasized the company’s ability to navigate economic pressures, noting, “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.”

However, the company faced increased financial costs due to rising interest rates and the devaluation of the naira. These factors contributed to a 34 per cent rise in net finance costs and a 36 per cent increase in net loss, which grew from N106.3 billion in 2023 to N144.9 billion in 2024.

In response to these challenges, Nigerian Breweries implemented a business recovery plan aimed at strengthening its financial position. The plan included a successful Rights Issue, which secured shareholder support and provided the capital needed to address mounting financial pressures.

According to its Company Secretary/Legal Director, Uaboi Agbebaku, the company’s strategic measures had begun to yield positive results, particularly in the final quarter of 2024. “In Quarter 4, 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,” he stated.

He further described the company’s return to a positive net profit position as a significant milestone. “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 Rights Issue have been utilised to significantly reduce future currency risks and the board remains committed to maintaining the improved financial position,” Agbebaku added.

Nigerian Breweries also acknowledged the crucial role played by its shareholders in supporting the Rights Issue. Expressing the company’s appreciation, Agbebaku reaffirmed its commitment to delivering value despite the prevailing economic uncertainties.

“While the economic landscape continues to evolve, the company remains focused on agility, innovation and operational excellence, ensuring it is well positioned for future opportunities while continuing to navigate the challenges of the Nigerian economy, which is characterized by foreign exchange volatility, limited access to foreign capital, impact of subsidy removal and naira devaluation,” he said.