Nig Breweries Records N1.1trn Revenue up to 81% in 2024- Essaadi

• Nigerian Breweries Plc says it generated N1.1 trillion in revenue for the financial year ended December 2024.
• Right Issues recorded 92% success in terms of the funds raised
• Q1′ 24 Successful CBN FX Intervention and FX rate Stability
• Acquisition of an 80% stake in Distell Wines and Spirits Nigeria Limited.
• Economic Growth Outlook GDP may grow marginally by 3.3% in 2025

At the pre-annual general meeting (PRE AGM) media briefing held on Thursday 3rd April in Lagos, Hans Essaadi, Managing Director of Nigerian Breweries Plc, announced that the company achieved N1.1 trillion in revenue for the financial year ending December 2024. This represents an 81 percent growth compared to the N599.5 billion revenue recorded in 2023. However, Essaadi also highlighted that the cost of goods sold (COGS) increased significantly by 98 percent, driven by soaring inflation and the depreciation of the Naira.

“Despite these challenges, our operating profit grew by 59 per cent, supported by disciplined cost management,” Essaadi said.

He further explained that net finance costs increased by 34 percent, amounting to N253 billion. This was largely due to higher interest rates and the adverse effects of foreign exchange on liabilities. “This weighed heavily on the bottom line, pushing our net loss up by 36 per cent to N145 billion,” he added.

In terms of operating activities, Essaadi noted that the company recorded a 53.7 percent increase, with figures rising from N44.49 billion in 2023 to N68.403 billion in 2024. However, the total loss for 2024 reached N144.338 billion, a 36.5 percent increase compared to the N105.769 billion loss incurred in 2023.

According to Essaadi, the company’s share capital rose by 201.5 percent, increasing from N5.138 billion in 2023 to N15.492 billion in 2024. Additionally, he highlighted a remarkable 614.2 percent surge in total equity, which climbed from N65.17 billion in 2023 to N465.47 billion in 2024.

Hans Essaadi, shared that the company continued its principal activities of brewing, marketing, and selling lager, stout, and non-alcoholic beverages throughout 2024. He emphasized that the year’s results were shaped by a difficult and complex business environment, which significantly impacted operations and the livelihoods of citizens across the nation.

Essaadi highlighted economic pressures, including soaring inflation rates and the devaluation of the Naira, as factors that drove operational costs and the price of raw materials to higher levels. He also pointed out that Nigeria’s inflation rate reached a near 30-year peak of 34.8 percent in December 2024.

“In spite of these hurdles, Nigerian Breweries demonstrated resilience through strategic adaptations, including a recapitalisation of the company through a rights issue,” Essaadi stated.

He further explained the company’s approach to overcoming challenges through increased local sourcing, innovation, and diversification. He noted that Nigerian Breweries completed the acquisition of a majority stake in Distell Wines and Spirits Nigeria Ltd during the year.

“Our ambition is to leverage diversity, promote equity, and embed inclusion to create business value in a fast-changing and complex environment, which positively impacts our customers and consumers and benefits the company,” Essaadi added.

Sade Morgan, the Corporate Affairs Director at Nigerian Breweries, also shared insights during the session. “We are hosting this session as a precursor to our AGM to share with you all of the relevant information about our business and to strengthen our relationship with the media,” Morgan stated.

Reflecting on the year, Morgan said, “We recognise that 2024 was a challenging year for business in Nigeria and for many businesses in Nigeria. This was a fallout of the economic slump of 2023, followed by a narrow decline, and all of this also led to a cash crunch, along with foreign exchange scarcity, high inflation, and a wealth crisis, and we all lived through it.”

Also emphasized the company’s commitment to transformative growth, designed to meet the needs of customers and consumers nationwide despite the prevailing challenges. Morgan added, “In spite of these challenges, we shaped our organisation for transformational growth to meet the needs of our customers and consumers all over Nigeria and beyond. So we remain committed to our purpose and are perfectly in the joy of true togetherness and inspiring a better world.

Mrs. Juliet Anammah, Chairperson of the Board of Directors, In her remarks, described the 2024 operating environment as a blend of economic highs and lows. She acknowledged meaningful progress from the Federal Government through policy clarity, tax reforms, and greater engagement with the private sector. Nigeria’s gross domestic product grew by 3.4 percent compared to 2.7 percent in 2023, but she pointed out that economic growth continues to lag behind overall well-being.

“The year also witnessed sharp increases in credit costs for individuals and businesses due to monetary policy tightening by the Central Bank of Nigeria.

“Given the country’s reliance on imports, this depreciation significantly drove up import costs, particularly for businesses dependent on imported raw and other materials as well as tradable goods and services.”

Challenges such as rising inflation, fiscal deficits, and further depreciation of the Naira created significant hurdles for businesses, including Nigerian Breweries. Despite these challenges, the company leveraged strategic adaptations like recapitalization, increased local sourcing, innovation, and diversification, which included acquiring majority stakes in Distell Wines and Spirits Nigeria Ltd.