Nigerian Breweries Posts N277bn Revenue In H1

The Nigerian Breweries Plc has reported a revenue of N277 billion for the half-year ended June 30, 2023.

The company’s unaudited and provisional results for H1, 2023, filed with the Nigerian Exchange Limited (NGX), showed that the company recorded a marginal growth in the revenue compared to the N274 billion recorded in the corresponding period in 2022.

Further analysis of the results revealed that cost of sales rose by 6.3 per cent to N165.094 billion from N155.349 billion in H1, 2022, while gross profit declined by 5.4 per cent from N118.736 billion to N112.325 billion in H1, 2023.

Meanwhile, the company recorded a net loss of N47.599 million as against net profit of N18.743 million in 2022.

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A statement signed by the company secretary/legal director, Uaboi Agbebaku, revealed that the half-year results were majorly impacted by the devaluation of the naira which led to revaluation of foreign exchange obligations and higher input costs.

“Other factors were the effect of petroleum subsidy removal on consumers, a one-off redundancy exercise cost and the impact of the cash crunch that hit the country in the first quarter of the year. As a result, the company recorded an escalated loss after tax of N47 billion in the half-year,” he stated.

Agbebaku explained that, “despite the impact of these challenges, the company recorded more than 100 per cent increase in its second quarter (Q2) operating profit versus the corresponding period in 2022, driven mainly by pricing, focus on premium products, as well as strong and effective management of cost by the company. The Q2, 2023 operating profit was also an improvement on the Q1, 2023 operating profit.”

He added that despite the current impact of the policy reforms of the federal government, the company was optimistic that the reforms would be beneficial in the long term for the company and the country as a whole.

The board reiterated its commitment to creating long term sustainable value for the company’ shareholders.