Nigerian Breweries, one of the biggest brewers in the country, posted a net loss of N57.19 billion in the third quarter of this year, compared to a profit of N14.76 billion in the same period in 2022.
However, the company’s revenue rose by 2.1 percent to N401.8 billion.
“Overall, volumes declined in the period under review due to continued high pressure on disposable income and the socio-political challenges in various parts of the country,” Uaboi Agbebaku, company secretary, said in a statement. “However, flavoured beer volume increased led by Desperados.”
He said the operating profit was impacted by the lower volumes, higher input costs influenced by inflation and devaluation of the naira, and a one-off restructuring cost.
“Pricing and significant cost savings initiatives were not enough to fully mitigate rising input costs. A combination of foreign exchange losses due to the devaluation of the naira and higher interest costs resulted in a net loss during the period,” he added.