Nigerian Breweries Plc has released its full-year 2024 audited financial report, revealing a massive revenue surge of 80.8% to N1.08 trillion, compared to N599.6 billion in 2023. Despite this impressive growth, losses ballooned to N144.8 billion, reflecting a 36.3% increase from the previous year’s N106.3 billion loss.
The company attributed its declining profitability to soaring costs, including higher raw material expenses, administrative costs, and foreign exchange losses, which continue to plague Nigerian businesses.
Key Financial Highlights
•Revenue:N1.08 trillion (+80.8% YoY)
•Cost of Sales:N764.5 billion (+97.5% YoY)
•Gross Profit:N319.9 billion (+50.5% YoY)
•Administrative Expenses:N46.7 billion (+48.0% YoY)
•Operating Income:N69.8 billion (+59% YoY)
•Finance Income:N4.2 billion (+726.5% YoY)
•Loss on FX Transactions:N157.5 billion (+2.8% YoY)
•Pre-Tax Loss:N182.9 billion (+26.0% YoY)
•Post-Tax Loss:N144.8 billion (+36.3% YoY)
•Total Assets:N1.1 trillion (+43% YoY)
Challenges Affecting Profitability
Despite record-breaking revenue, Nigerian Breweries’ losses deepened, with rising production costs and foreign exchange losses being the biggest culprits. The cost of sales increased by 97.5%, jumping to N764.5 billion from N387 billion in 2023.
•99.9% of revenue came from domestic sales, while exports contributed just 0.1%.
•Operating income surged 59% to N69.8 billion, but rising operational costs eroded potential gains.
•Finance income skyrocketed by 726.5%, reaching N4.2 billion, but it wasn’t enough to offset FX losses.
Company’s Response & Recovery Plan
In response to these challenging market conditions, Nigerian Breweries launched a business recovery plan in 2024, backed by shareholders. A Rights Issue was introduced to strengthen its financial position.
Despite posting losses, the company expressed optimism about the future, stating:
“The Board is pleased to report positive developments as a result of the actions taken. In the last quarter of the year, the company demonstrated a strong recovery and positive momentum in terms of revenue and operating profit.”
Outlook for Nigerian Breweries
The company’s ability to generate over N1 trillion in revenue highlights its resilient market presence in Nigeria’s beverage industry. However, addressing rising operational costs and currency volatility will be crucial for achieving long-term profitability.
With cost-cutting measures, improved forex management, and strategic growth plans, Nigerian Breweries aims to rebound in 2025 and restore shareholder confidence.
