Lagos: Nigerian Breweries Plc has reported a revenue of N1.1 trillion for the financial year ending December 2024. The company’s Managing Director, Hans Essaadi, revealed this development during a pre-annual general meeting media briefing held on Thursday.
According to News Agency of Nigeria, Essaadi stated that the N1.1 trillion revenue signifies an 81 percent increase compared to the company’s 2023 revenue of N599.5 billion. However, he noted that the cost of goods sold increased by 98 percent, attributed to high inflation and the devaluation of the Naira. Despite these challenges, the company’s operating profit grew by 59 percent due to disciplined cost management.
Essaadi further explained that net finance costs rose by 34 percent to N253 billion, primarily due to higher interest expenses and the foreign exchange impact on payables. This financial burden resulted in a net loss increase of 36 percent, amounting to N145 billion. The company’s results from operating activities showed a 53.7 percent rise from N44.49 billion in 2023 to N68.403 billion in 2024.
The loss for the year 2024 was recorded at N144.338 billion, marking a 36.5 percent increase from the previous year’s loss of N105.769 billion. Additionally, Nigerian Breweries’ share capital saw a 201.5 percent increase from N5.138 billion in 2023 to N15.492 billion in 2024, while total equity surged by 614.2 percent from N65.17 billion in 2023 to N465.47 billion in 2024.
During the year, the company’s primary activities remained focused on brewing, marketing, and selling lager, stout, and non-alcoholic drinks. Essaadi highlighted that the 2024 results were influenced by a challenging business environment, which affected operations and livelihoods across the nation. Economic pressures, including elevated inflation rates and naira devaluation, escalated operational costs and raw material prices. Nigeria’s inflation rate reached a near 30-year high of 34.8 percent in December 2024.
Despite these hurdles, Nigerian Breweries demonstrated resilience by implementing strategic adaptations such as recapitalization through a rights issue and increasing local sourcing. The company also completed the acquisition of majority stakes in Distell Wines and Spirits Nigeria Ltd. Essaadi emphasized the company’s ambition to leverage diversity, promote equity, and embed inclusion to create business value in a complex environment.
Sade Morgan, Corporate Affairs Director, Nigerian Breweries, added that the session served as a precursor to the AGM, aimed at sharing pertinent business information and strengthening media relations. She acknowledged 2024 as a challenging year for businesses in Nigeria, citing the impact of the 2023 economic slump, subsequent decline, cash crunch, foreign exchange scarcity, high inflation, and wealth crisis. Despite these challenges, Nigerian Breweries focused on transformational growth to meet customer needs across Nigeria and beyond, remaining committed to its purpose of fostering true togetherness and inspiring a better world.