Nigerian Breweries Plc nearly doubled its sales in 2024 with turnover rising by 81 per cent from N599.6 billion to N1.1 trillion.
Key extracts of the audited report and accounts of Nigerian Breweries for the year ended December 31, 2024 showed that gross profit grew by 51 per cent from N212.6 billion in 2023 to N320 billion in 2024.
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The operating profit equally rose significantly by 59 per cent from N44 billion to N70 billion.
Mr. Hans Essaadi, Managing Director, Nigerian Breweries Plc, said the impressive revenue growth was largely driven by strategic pricing initiatives, market expansion, successful innovations, and operational efficiencies.
He noted that despite macroeconomic headwinds faced by the company, group operating profit rose by 54 per cent, reflecting the success of cost management, process optimisation and strong operational performance.
He added that the 34 per cent increase in the net finance costs and the 36 percent increase in the net loss recorded by the company were driven by the rise in interest rates as well as the impact of the devaluation of the naira. With these, net loss went up from N106.3 billion in 2023 to N144.9 billion in 2024.
Mr. Uaboi Agbebaku, Company Secretary and Legal Director, Nigerian Breweries Plc, stated that the company took some bold steps in 2024 to deal with the issues that impacted the net profit and to strengthen its financial position.
He pointed out that the board obtained the support of shareholders for the company’s business recovery plan including a successful rights issue.
He added that the bold steps have started to yield positive results with the company demonstrating strong recovery and positive momentum in the last quarter of 2024.
According to him, in fourth quarter, revenue grew by 89 per cent while operating profit increased by 145 per cent. Notably, net finance costs went down by 75 per cent leading to a return to profitability in the quarter, the first time in two years.
“The return to a positive net profit position marks a major step in the company’s journey towards long term profitability and financial stability. It also reinforces the effectiveness of ongoing transformation initiatives. The proceeds from the right issues have been utilised to significantly reduce future currency risks and the board remains committed to maintaining the improved financial position,” Agbebaku said.
While appreciating the shareholders for their support on the rights issue, he maintained that the company would continue to navigate the challenges of the Nigerian business environment to bring about profitability for the business.
Said he: “While 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 economy, which is characterized by foreign exchange volatility, limited access to foreign capital, impact of subsidy removal and naira devaluation”.