Nigerian Breweries Generates N703bn Revenue In Third Quarter

Posted by African Examiner Business News, Latest Headlines Thursday, October 24th, 2024

(AFRICAN EXAMINER) – Nigerian Breweries Plc has posted N703 billion revenue generation for the third quarter ended Sept. 30, 2024.

This indicates 75 per cent growth, when compared with N402 billion, recorded in the corresponding period of 2023.

The Managing Director, Nigerian Breweries Plc, Mr Hans Essaadi, said this in the company’s unaudited results sent to the Nigerian Exchange Group (NGX) in Thursday in Lagos.

Essaadi stated that the company’s gross profit in the period under review rose to N207 billion, from N152 billion recorded same period of 2023, representing 36 per cent increase.

He explained that the gross profit grew behind the revenue as a result of 99 per cent surge in the cost of goods sold, primarily influenced by currency devaluation and rise in input costs.

According to him, cost of sales rose from N249 billion in 2023 to N495 billion in 2024,.

He added that marketing, distribution and administration expenses advanced by 45 per cent, from N127billion in 2023 to N184 billion in the period under review.

Essaadi stated that in spite of the continued challenging operating landscape characterised by high inflation, currency devaluation and rising input costs, the company had demonstrated resilience, as seen in the results delivered.

“The business has delivered growth in the face of the challenging operating environment. Revenue grew by 75 per cent, benefitting from strategic pricing, innovation and market recovery,”he said.

Essaadi noted that foreign exchange losses largely influenced the company’s increase in net loss due to the Naira devaluation and high borrowing costs.

He said this arose from higher interest rates, adding that the funds raised through the rights issue would strengthen the company’s balance sheet and significantly reduce its foreign exchange exposure.

Also, Mr Uaboi Agbebaku, Company Secretary/Legal Director of Nigerian Breweries Plc, reaffirmed the company’s enduring commitment to winning with Nigeria.

Agbebaku said this would be done through people development, strategic innovation, operational efficiency, and community impact.

He stated that the brewer’s board remained confident in its long-term strategy to deliver value to shareholders.

The company secretary appreciated the companys partners, customers and all stakeholders for their immense support during these challenging times.

Nigerian Breweries, a member of the Heineken group, is Nigeria’s pioneer and largest brewing company incorporated in 1946 as Nigerian Brewery Ltd.

It has a portfolio of 19 high-quality brands, namely Heineken, Desperados, Maltina, Life, Amstel Malta, Gulder, Fayrouz, and Legend, produced from nine breweries and distributed nationwide.(NAN)