Nigerian Breweries Plc loss widened to N47.5 billion in the second quarter(Q2) of 2003 as the impact of foreign exchange (FX) volatility hit earnings.
The company had in the first quarter posted its first net loss in more than a decade.
Net revenues rose by 1.24% to N277.4 billion, while gross profit fell 5.3 percent to N112.32 billion in the period under review as against N118.7 billion the previous year.
A massive N85.26 billion net loss on foreign exchange transactions led to loss after tax of N47.59 billion.
Consumer goods firms are struggling with volatility in the price of the global commodity market which balloons raw material cost, logistics problems, deteriorating disposable income, and foreign exchange illiquidity.
Nigerian Breweries stock has returned -2.44% year to date, underperforming the wider NGX all-share index which is up 27.7% so far in 2023.
“The 2nd Quarter of 2023 was significantly impacted by various factors, including the effect of fuel subsidy removal on consumers, naira devaluation and its effect on input cost, and mostly the revaluation of foreign exchange obligations. Together with the cash crunch which materially impacted the 1st quarter, the Company’s net loss was escalated,” Nigerian Breweries said in a statement.
