H1’2024: Nigerian Breweries’ revenue increases by 73% to N479.8bn

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11 months ago

Nigerian Breweries Plc, a leading total beverage alcohol company in Nigeria, has posted a 34 percent increase in operating profit for its half-year period ended June 30, 2024.

According to the unaudited results, which were released to the Nigerian Exchange Group (NGX), the brewer also recorded N479.8 billion revenue in H1 2024, a 73 percent increase in revenue from the N277.4 billion revenue recorded in H1 2023.

Speaking on the result, Mr Hans Essaadi, Managing Director/CEO, Nigerian Breweries Plc said: “In the six months ended June 30, 2024, Nigerian Breweries demonstrated resilience and is on the path to recovery as seen in the results delivered despite the challenging external environment characterizsed by high inflation and heightening operating costs.

“Our revenue grew by 73 percent 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 percent, 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 percent increase in operating profit, signalling the resilience and strength of our operations.

“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,” Essaadi 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.”