Nigerian Breweries Plc, a leading total beverage alcohol company in Nigeria, has posted a
34% increase in operating profit for its half-year period ended 30 June 2024.
The unaudited results, which were released to the Nigerian Exchange Group (NGX),also
revealed a 73% increase in revenue in the period despite the challenging operating
environment characterized by soaring inflation, exchange rate volatility, security
challenges, elevated input costs, and rising cost of living.
Speaking on the result, Mr. Hans Essaadi, Managing Director/CEO, Nigerian Breweries Plc
said: “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.”
“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 also disclosed that the company is in the process of initiating a Rights Issue to raise
up to N600 billion in additional capital to restore the business to profitability and enhance
operational and financial stability as part of its resilient and forward-thinking strategy.
“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”,
Essaadi explained.
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“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”, he added.
Speaking on behalf of the Board, Legal Director and Company Secretary, Uaboi Agbebaku,
assured that “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”.
