Nigerian Breweries Plc, the leading brewing company in Nigeria, has achieved a remarkable 75% revenue growth over nine months. For the period ending September 30, 2024, the company reported revenue of N703 billion, compared to N402 billion during the same period in 2023.
According to the unaudited results shared with the Nigerian Exchange Group (NGX), the company’s gross profit rose to N207 billion, up from N152 billion in the previous year, reflecting a 36% increase. This growth in gross profit lagged behind revenue due to a staggering 99% increase in the Cost of Goods Sold, driven primarily by currency devaluation and rising input costs.
A detailed analysis of the results shows that the Cost of Sales jumped from N249 billion in 2023 to N495 billion in 2024, while Marketing, Distribution, and Administration expenses rose by 45%, from N127 billion in 2023 to N184 billion in 2024.
Hans Essaadi, Managing Director/CEO of Nigerian Breweries Plc, commented on the results, stating that despite the ongoing challenges of high inflation, currency devaluation, and increasing input costs, the company has shown resilience. “Revenue grew by 75%, thanks to strategic pricing, innovation, and market recovery,” Essaadi noted.
He explained that the increase in net loss was largely attributed to foreign exchange losses due to the naira’s devaluation and higher borrowing costs from elevated interest rates. He expressed optimism that the funds raised through the recent rights issue will strengthen the company’s balance sheet and significantly reduce its foreign exchange exposure.
On behalf of the Board, Uaboi Agbebaku, Company Secretary/Legal Director of Nigerian Breweries Plc, reaffirmed the company’s commitment to “Winning with Nigeria” through people development, strategic innovation, operational efficiency, and community impact. He added that the board remains confident in its long-term strategy to deliver value to shareholders and expressed gratitude to trade partners, customers, and all stakeholders for their significant support during these challenging times.
