Nigeria: Nigerian Breweries records 75% revenue growth in January-September

Nigerian Breweries Plc, the foremost brewing company in Nigeria, has recorded a 75% revenue growth for the 9 month period ended 30th September 2024, relative to the corresponding period in 2023, Nairametrics reported on October 24.

The revenue recorded for the company stood at N703billion, as against N402 billion, which was recorded in the corresponding period in 2023.

According to the unaudited results released to the Nigerian Exchange Group (NGX), the company’s gross profit in the period under review rose to N207 billion from N152 billion in the corresponding period in 2023, representing a36% rise. Gross profit grew behind revenue as a result of a 99% surge in the Cost of Goods Sold, primarily influenced by currency devaluation and rise in input costs.

An analysis of the recently released results revealed that the Cost of Sales rose from N249 Billion in 2023 to N495 billion in 2024, while Marketing, Distribution, and Administration expenses experienced a rise of 45% from N127billion in 2023 to N184 billion in 2024.

Speaking on the results, Managing Director/CEO Nigerian Breweries Plc, Hans Essaadi revealed that despite the continued challenging operating landscape characterised by high inflation, currency devaluation and rising input costs, the company has demonstrated resilience, as seen in the results delivered for the period ended 30th September 2024.

“The business has delivered growth in the face of the challenging operating environment. Revenue grew by 75% benefitting from strategic pricing, innovation and market recovery”, Essaadi noted.

He stated that foreign exchange losses largely influenced the company’s increase in net loss due to the naira devaluation and high borrowing costs arising from higher interest rates, and expressed optimism that the funds raised through the rights issue will strengthen the company’s balance sheet and significantly reduce its FX exposure.

Speaking on behalf of the Board, the Company Secretary/Legal Director of Nigerian Breweries Plc, Uaboi Agbebaku, reaffirmed the company’s enduring commitment to Winning with Nigeria through people development, strategic innovation, operational efficiency, and community impact, adding that the board remains confident in its long-term strategy to deliver value to shareholders.

He expressed appreciation to the trade partners, customers and all stakeholders for their immense support during these challenging times.

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