2023 Full Year Results: Nigerian Breweries Records N106 Billion Loss Despite An Operating Profit Of N44.5 Billion

2023 Full Year Results: Nigerian Breweries Records N106 Billion Loss Despite An Operating Profit Of N44.5 Billion

 

Key Highlights:

  • Revenue surges by 9%, showcasing resilience amidst economic challenges.
  • Operating profit declines by 15% due to increased input costs and economic pressures.
  • Expansion into wines and spirits category presents growth opportunities.

Nigerian Breweries Plc, the renowned brewing giant in Nigeria, recently disclosed its audited results for the fiscal year ending December 31, 2023, revealing a significant net loss of N106 billion. Despite this setback, the company demonstrated resilience with a 9% increase in revenue, reaching N44.5 billion in operating profit. The results, submitted to the Nigerian Exchange Limited (NGX), shed light on various operational challenges faced by the company amid Nigeria’s economic landscape, including currency devaluation and escalating costs.

Mr. Hans Essaadi, the Managing Director/CEO of Nigerian Breweries Plc, attributed the adverse performance to a myriad of economic factors such as cash scarcity, fuel subsidy removal, naira devaluation, foreign exchange shortages, and constrained consumer spending amidst soaring inflation. He emphasized the company’s efforts to mitigate these challenges through strategic pricing, efficient sales operations, and stringent cost management.

Looking ahead, Essaadi acknowledged the persisting macro-economic challenges but expressed optimism in leveraging the groundwork laid in 2023 for future opportunities. One such opportunity is the recent acquisition of an 80% stake in Distell Wines and Spirits Limited, along with exclusive import rights for Heineken Beverages’ products from South Africa. This strategic move aims to diversify the company’s portfolio and tap into the burgeoning wines and spirits segment, aligning with the evolving consumer preferences in the beverages industry.

Essaadi highlighted the company’s commitment to resilience and innovation, leveraging its extensive experience and robust supply chain to drive long-term value for stakeholders. Despite the turbulent economic conditions, Nigerian Breweries Plc remains dedicated to delivering quality products and sustaining its position as a market leader in Nigeria’s brewing industry.

About Nigerian Breweries PLC: Established in 1946, Nigerian Breweries Plc is Nigeria’s foremost brewing company and a member of the HEINEKEN Group. With a rich portfolio of 21 premium brands, including Heineken, Desperados, Maltina, and Gulder, the company operates nine breweries nationwide, serving consumers with top-quality beverages. Nigerian Breweries Plc has been recognized for excellence in various aspects of its operations, including product quality, marketing, sustainability, and corporate social responsibility.

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