Q1 2024: Nigerian Breweries Reports Strong Performance with an 84% Increase in Revenue

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Brewing giant, Nigerian Breweries Plc, has posted a revenue of N227 billion for its first quarter ended 31st March 2024, an increase of 84% versus the corresponding period in 2023. The unaudited results released to the Nigerian Exchange Limited (NGX) showed that results from operating activities grew by over 1000% in the period under review. The increase has been achieved amidst a challenging macroeconomic environment marked by rising inflation and FX volatility, amongst others. The result also benefited from overlaying a weak first quarter 2023 impacted by the Naira Redesign policy and ensuing cash crunch.

The Managing Director/CEO, Mr Hans Essaadi, said the result is the result of deliberate actions taken as part of the company’s strategic recovery plan and a dedicated workforce demonstrating resilience amidst a challenging macroeconomic environment.

Essaadi said that “Nigerian Breweries achieved a strong 84% growth in revenue, primarily propelled by product innovation, rigorous cost saving initiatives, and inflation-led pricing adjustments. We drove sales by intensifying our consumer engagement activities, enhancing the delivery of our route-to-consumer strategy, and harnessing the power of our brands and people.”

“Despite the strong top-line growth, net loss for the period rose by 391% in comparison to the previous year, primarily because of the increased interest rates resulting from upward adjustments in monetary policy, and continued volatility in the foreign exchange market. Nevertheless, we have begun to see quick results with our business recovery plan which prioritizes efficient cost management practices and optimizing our operations for efficiency, the outcome being the growth recorded in our revenue and operating profit”, he added.

Looking forward, Essaadi revealed that “irrespective of the continued challenging operating environment with high-level inflation and pressured consumer income spending, Nigerian Breweries maintains an unwavering belief in the positive long-term market fundamentals of Nigeria. We are committed to navigating the current challenges with the implementation of our business recovery plan. We remain wholly committed to having a positive impact on our host communities and our consumers, leveraging our strong supply chain footprint, excellent execution of our route-to-market strategy, and introducing compelling new additions to our rich portfolio to enhance consumer satisfaction while upholding our commitment to our employees.” 

On his part, Legal Director and Company Secretary, Mr. Uaboi Agbebaku, on behalf of the Nigerian Breweries Board, assured that the “Board remains confident of our long-term strategy to deliver value to our shareholders”.

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