Nigerian Breweries Plc Declares N52bn Loss in Q1 2024

Nigerian Breweries Plc has recorded a loss after tax of N52.089 billion for the first quarter ended 31 March indicating a 386.13 per cent increase, compared to N10.715 billion posted in the same quarter ended March 31, 2023.

The company disclosed this in its unaudited condensed interim financial statements sent to the Nigerian Exchange Ltd., in Lagos.

The statement was signed by its Managing Director, Han Essaadi, and Finance Director, Bernardus Boer.

The group’s loss before tax for the period under review stood at N65.58 billion, representing a rise of 276 per cent, in contrast to N17.44 billion posted in the same period of the previous year.

Mr Essaad said that the company’s performance was subject to seasonal fluctuations as a result of weather conditions and festivities.

He noted that the company’s full-year results and volumes were dependent on the performance in the peak-selling season, typically resulting in higher revenue and profitability in the last quarter of the year.

“The impact of seasonality is also noticeable in several working capital related items such as inventory, trade receivables, and payable,” the managing director said.

The News Agency of Nigeria (NAN) reports that Nigerian Breweries recorded a net loss of N106 billion for the year ended 2023, as against N13.93 billion posted in its 2022 financials, indicating a decline of 860 per cent.

The firm’s gross profit for the year ended 2023 also fell by 0.3 per cent to N212.5 billion, compared to N213.20 billion posted in the previous year.

Also, the firm’s operating profit declined by 15.3 per cent to 45 billion, against N53 billion recorded in the corresponding year.

The firm disclosed it recorded a loss in operating profit due to higher input costs and one-off reorganisation costs despite strong and aggressive cost savings and other efficiency measures.

Meanwhile the firm recorded N81.88 billion gross profit in the first quarter ending March 31.

This represented an 87 per cent increase when compared with N43.88 billion posted in the first quarter ended 31 March 2023.

The group’s total assets also rose by eight per cent to N856.79 billion as of 31 March, compared to N795.87 billion posted in the same period in 2023.

Its total equity for the quarter under review dropped by 82.3 per cent to N11.41 billion, in contrast to N63.28 billion recorded as of 31 December 2023.

The group’s total liability as of the quarter ended 31 March, advanced by 15.42 per cent, to N845.38 billion, compared to N732.59 billion posted for the year ended 31 December 2023.

Also, shareholders of the Nigerian Breweries Plc, on Friday, unanimously approved capital raising of N600 billion by way of rights issue at the 78th Annual General Meeting (AGM) of the company in Lagos.

With this development, the board now has the authorisation to undertake capital restructuring through a rights issue.

This will enable all the company’s shareholders the opportunity to acquire more shares in proportion to their holdings, at a price determined by the Board, taking into consideration the market conditions. NAN

April 30, 2024