Nigerian Breweries Plc has released its audited Group Financial Statements for the 2024 financial year, reporting an unprecedented revenue of N1.1 trillion.
This marks a significant 81% increase from the N599.6 billion recorded in 2023.
A breakdown of the audited results showed a remarkable 51% growth in group gross profit, rising from N212.6 billion in 2023 to N320 billion in 2024.
Despite the impact of rising input costs, the company’s operating profit also surged by 59% from N44 billion to N70 billion.
Speaking on the results, Managing Director/CEO of Nigerian Breweries Plc, Mr. Hans Essaadi, attributed the impressive revenue growth to key business strategies, including pricing initiatives, market expansion, innovation, and operational efficiencies.
‘Despite macroeconomic headwinds faced by the company, group operating profit surged by 54%, reflecting the success of cost management, process optimization and strong operational performance’, he noted.
The company recorded a 34% rise in net finance costs and a 36% increase in net loss, driven by rising interest rates and the devaluation of the naira. The net loss increased from N106.3 billion in 2023 to N144.9 billion in 2024.
In a statement on Friday by the Company Secretary/Legal Director, Mr. Uaboi Agbebaku, Nigerian Breweries disclosed that it took bold steps to mitigate the factors impacting net profit and to strengthen its financial standing. Among these measures was a successful Rights Issue, which was backed by shareholders as part of a business recovery plan.
Agbebaku further stated that these strategic steps have already begun yielding positive results, as evidenced by the company’s strong recovery and positive momentum in the last quarter of 2024.
‘In Quarter 4, Revenue grew by 89% while operating profit increased by 145%. Notably, net finance costs went down by 75% 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 Rights Issue have been utilised to significantly reduce future currency risks and the board remains committed to maintaining the improved financial position’, he said.
While expressing appreciation to shareholders for their support, Agbebaku reaffirmed the company’s commitment to navigating Nigeria’s challenging business environment to sustain profitability.
‘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, the impact of subsidy removal and naira devaluation’, he stated.
