Nigerian Breweries records N106bn loss in 2023

Nigerian Breweries Plc has recorded a net loss of N106 billion for the year ended 2023, as against N13.93 billion posted in its 2022 financials, indicating an 860 percent loss.

Mr Uaboi Agbebaku, Company Secretary, Nigerian Breweries, stated this in the audited financial result of the company for the year ended 2023 sent to the Nigerian Exchange Ltd. (NGX)

Agbebaku said the gross profit of the company for the year under review also fell by 0.3 percent to N212.5 billion, compared to N213.20 billion posted in the previous year.

He stated that the operating profit of the company declined by 15.3 percent to N53 billion, as against N53 billion recorded in the corresponding year.

The company secretary said that the firm recorded a loss in its operating profit due to higher input costs and one-off reorganisation costs, despite strong and aggressive cost savings and other efficiency measures.

According to him, the company was able to grow its revenue by nine percent to N599 billion, compared to N551 billion posted in the previous year, which was aided by a positive price mix.

Agbebaku stated that the Nigerian business landscape experienced significant shifts in 2023, with substantial impacts on businesses and livelihoods nationwide.

He explained that the Naira note redesign, which resulted in a cash shortage that severely hampered social and economic activities nationwide, set the tone for a turbulent year.

Agbebaku said: “High double-digit inflation rates, with food inflation at more than 30 percent and the removal of subsidies on fuel,.

“Coupled with the impact of the devaluation of the naira, which resulted in a foreign exchange loss of N153 billion, this further exacerbated the already difficult environment for the populace and businesses.

“In a difficult operating environment, the Board will ensure that the company builds on its more than 77 years’ experience of operating in Nigeria to cope with current realities.

He said the company would continue to be resilient and forward-thinking, leveraging its broad portfolio, strong supply chain footprint, and passionate workforce to drive long-term value creation for its shareholders and other stakeholders.