Nigerian Breweries Plc, a prominent total beverage alcohol firm in Nigeria, has achieved a 34% increase in operational profit for its half-year period, which ended on 30 June 2024.
Despite the difficult operating environment marked by high inflation, volatile exchange rates, security issues, high input costs, and rising cost of living, the unaudited results—which were provided to the Nigerian Exchange Group (NGX)—also showed a 73% increase in revenue during that time.
Mr. Hans Essaadi, Nigerian Breweries Plc’s Managing Director and CEO, discussed the outcome, saying: “In the 6 months ended 30 June 2024, Nigerian Breweries demonstrated resilience and is on the path to recovery as seen in the results delivered despite the challenging external environment characterized by high inflation and heightening operating costs.”
Continuing: “Our revenue grew by 73% in the half-year compared to the same period in 2023. The growth was driven by strategic pricing, innovation volume growth, and market recovery. Cost of sales, distribution, and admin expenses increased by 46%, largely due to inflationary pressure and forex devaluation impacting imported materials. We also continue to invest behind our brands and categories and support the recovery of the market,” Essaadi added.
BrandSpur national news brand desk reports that as part of its resilient and forward-thinking strategy, Essaadi also revealed that the company is in the process of starting a rights issue to generate up to N600 billion in additional capital to bring the business back to profitability and improve operational and financial stability.
Speaking further, Essaadi disclosed: “The funds raised will be used to eliminate our foreign exchange-denominated debts and reduce our local debts, thereby mitigating our exposure to the continuing economic challenges. Through our cost-saving and other efficiencies initiatives, we recorded a 34% increase in operating profit, signalling the resilience and strength of our operations.”
Adding that: “We are conscious of the continued challenging operating environment with double-digit inflation and pressured consumer income spending. However, we continue to focus on our strategy to deliver value to our shareholders while contributing to the country’s economic development.”
“The Board remains confident in our long-term strategy to deliver value to our Shareholders and re-affirms the Company’s enduring commitment to Winning with Nigeria through people development, strategic innovation, operational efficiency, and community impact,” Uaboi Agbebaku, the Legal Director and Company Secretary, guaranteed on behalf of the Board.
About Nigerian Breweries PLC:
Nigerian Breweries Plc is the largest and most pioneering brewing firm in Nigeria and a member of the HEINEKEN Group. The company, known as “Nigerian Brewery Limited,” was founded in 1946 and achieved historical significance in June 1949 when the first bottle of STAR lager beer was produced at its Lagos brewery bottling plant.
Currently, it has an extensive portfolio of nine breweries’ worth of premium brands, sold all throughout the country, including Heineken, Desperados, Maltina, Life, Amstel Malta, Gulder, Fayrouz, and Legend. In addition, Nigerian Breweries Plc has won numerous accolades and been acknowledged for its achievements in several other operational domains, such as sustainability, corporate social responsibility, productivity and innovation, excellence in marketing, and health and safety.
To learn more, visit the Nigerian Breweries website: nbplc.com.
