Nigerian Breweries’ annual loss widens to N144.88bn

Nigerian Breweries saw its loss after tax widen to N144.88 billion last year from N106.31 billion in 2023.

Its revenue jumped to N1.08 trillion from N582.6 billion, according to its earnings report released on Friday.

The country’s largest brewer said the Nigerian business landscape in 2024 remained challenging, with economic pressures continuing to shape the operating environment.

It said inflation maintained its upward trajectory, peaking above 33%, while food inflation surpassed 40%, further straining consumer purchasing power.

It said: “Foreign exchange volatility and limited access to foreign capital created additional hurdles for businesses, while the lingering effects of the fuel subsidy removal and Naira devaluation significantly increased operating costs across industries.

“Despite these macroeconomic headwinds, the Group recorded an impressive 81% year-on-year revenue growth, driven by market expansion, successful innovations, strategic pricing initiatives and operational efficiencies. Operating profit also surged by 59% supported by strong cost management initiatives. However, increased interest rates and the impact of the devaluation of the naira, led to a 34% increase in finance costs and impacted overall profitability with net loss increasing by 36%.”

To deal with the issues that impacted the net profit and to strengthen the company’s financial position, it embarked on a business recovery plan in 2024, including a rights issue, according to the report.

It said: “The board is pleased to report positive developments as a result of the actions taken. In the last quarter of the year, the Company demonstrated strong recovery and positive momentum. Group revenue grew by 89%, while operating profit increased by 145%. Notably, net finance costs went down by 75% leading to a return to profitability in that quarter, the first time in two years. The return to a positive net profit marks an important step towards the Company’s long-term profitability and 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 this improved financial position. As 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 business environment.”