Nigerian Breweries Plc reported generating N703 billion in revenue during the third quarter, which concluded on September 30, 2024. This represents a 75% increase over the N402 billion recorded during the same period in 2023.
In the company’s unaudited results, which were submitted to the Nigerian Exchange Group (NGX) on Thursday in Lagos, Mr. Hans Essaadi, the managing director of Nigerian Breweries Plc, stated as much. Essaadi said that the company’s gross profit increased by 36% to N207 billion during the reviewed period from N152 billion during the same period in 2023.
He added that a 99 percent increase in the cost of goods sold, mostly due to currency devaluation and rising input costs, caused the gross profit to grow behind revenue.
The cost of sales increased from N249 billion in 2023 to N495 billion in 2024, he said. He noted that from N127 billion in 2023 to N184 billion during the reviewed period, marketing, distribution, and administrative costs increased by 45%. Essaadi claimed that despite the ongoing difficult operating environment, which is marked by high inflation, currency depreciation, and growing input costs, the company has shown resilient, as evidenced by the outcomes it has produced.
“Despite the difficult operating climate, the company has produced growth. Thanks to innovative pricing, market recovery, and strategic pricing, revenue increased by 75%,” he stated. Essaadi pointed out that the devaluation of the Naira and the high cost of borrowing were the main causes of the company’s increase in net loss, which was mostly caused by foreign exchange losses.
Higher interest rates were the cause of this, he said, adding that the money acquired from the rights offering will improve the company’s balance sheet and drastically lower its exposure to foreign exchange risk. Additionally, Nigerian Breweries Plc’s Company Secretary/Legal Director, Mr. Uaboi Agbebaku, reiterated the business’s unwavering dedication to succeeding alongside Nigeria.
According to Agbebaku, this will be accomplished through community impact, strategic innovation, operational efficiency, and people development. According to him, the brewer’s board is still confident in its long-term plan to provide shareholders with value.
The company secretary expressed gratitude to all stakeholders, including customers and partners, for their tremendous assistance during these trying times. Nigerian Breweries, a part of the Heineken group, was established in 1946 as Nigerian Brewery Ltd. and is the country’s first and biggest brewing enterprise.
Nine breweries create its range of 19 premium brands, which are supplied all throughout the country and include Heineken, Desperados, Maltina, Life, Amstel Malta, Gulder, Fayrouz, and Legend.
