A detailed analysis of the audited figures indicates a substantial 51 percent rise in group gross profit, climbing from N212.6 billion in 2023 to N320 billion in 2024. Operating profit also saw a significant increase of 59 percent, growing from N44 billion to N70 billion during the year, despite facing challenges from rising input costs.
Hans Essaadi, Managing Director/CEO of Nigerian Breweries Plc, commented on the results, attributing the impressive year-on-year revenue growth to strategic pricing strategies, market expansion, successful innovations, and enhanced operational efficiencies.
”Despite macroeconomic headwinds faced by the company, group operating profit surged by 54 percent, reflecting the success of cost management, process optimisation and strong operational performance”, he stated.
He further noted that the 34 percent rise in net finance costs and the 36 percent increase in net loss were influenced by higher interest rates and the effects of naira devaluation. The net loss escalated from N106.3 billion in the previous year to N144.9 billion.
In a statement from Uaboi Agbebaku, Company Secretary/Legal Director, the brewery indicated that it undertook significant measures in 2024 to address the factors affecting net profit and to bolster its financial standing. The Board secured shareholder support for the company’s business recovery plan, which included a successful Rights Issue.
Agbebaku also revealed that these decisive actions have begun to produce positive outcomes, with the company showing strong recovery and positive momentum in the final quarter of 2024.
Fourth-quarter revenue increased by 89 percent, while operating profit rose by 145 percent. Significantly, net finance costs decreased by 75 percent, resulting in a return to profitability—the first time in two years.
This return to positive net profit signifies a crucial advancement in the company’s pursuit of long-term profitability and financial stability, and underscores the efficacy of our ongoing transformation initiatives.
Funds from the rights issue have been strategically allocated to substantially mitigate future currency risks, and the board remains dedicated to preserving this improved financial standing.
He expressed gratitude to the shareholders for their backing during the Rights issue, emphasizing the company's commitment to overcoming the challenges present in the Nigerian business landscape to achieve profitability.
“While the economic landscape continues to evolve, the company remains focused on agility, innovation and operational excellence, ensuring it is well positioned for future opportunities while continuing to navigate the challenges of the Nigerian economy, which is characterised by foreign exchange volatility, limited access to foreign capital, impact of subsidy removal and naira devaluation,” he said.