Nigerian Breweries, impacted by naira’s devaluation, post a net loss of N106 billion

Nigerian Breweries Plc revealed a net loss of N106 billion for the year, primarily due to the impact of the naira’s devaluation on its foreign exchange operations, in its audited accounts for the period ended December 31, 2023.

According to the audited figures provided to the NGX, income increased by 9% over the previous 2022 quarter.

Additionally, the business declared an operational profit in 2023 of N44.5 billion. Nevertheless, this was 15% less than the same period the year before, with the reduction being attributed to various economic factors, a one-time reorganization expense, and an increase in input costs.

Mr. Hans Essaadi, Managing Director/CEO of Nigerian Breweries Plc, made the following statement in response to the announcement: “The business performance of 2023 reflects the challenging economic environment in Nigeria.

“These dire economic circumstances include a continuing lack of cash, the elimination of fuel subsidies, which has led to a significant increase in energy costs, the depreciation of the naira, a shortage of foreign exchange, and ongoing difficulties with consumer spending in the face of rising inflation.” He added.

Notwithstanding these obstacles, the company made some headway, generating a 9% increase in revenue with the help of a favorable price mix.

Regretfully, the devaluation of the naira hindered our efforts and resulted in a loss of N153 billion in foreign exchange transactions.

The company said that its response to the difficulties posed by the difficult economic environment was to lower business risk by emphasizing a favorable price mix, effective sales operations, robust and aggressive cost control, and other efficiency initiatives.