Nigerian Breweries Plc has recorded a 75 per cent revenue growth for the third quarter (Q3) ended September 30, 2024.
The unaudited Q3 results released to the Nigerian Exchange Group (NGX) revealed that the revenue for the company stood at N703 billion, as against N402 billion, which was recorded in the corresponding period in 2023.
Also, the company’s gross profit in the period under review rose to N207 billion from N152 billion in the corresponding period in 2023, representing a 36 per cent rise. Gross profit grew behind revenue as a result of a 99 per cent surge in the cost of goods sold, primarily influenced by currency devaluation and rise in input costs.
An analysis of the results revealed that the cost of sales rose from N249 billion in 2023 to N495 billion in 2024, while marketing, distribution, and administration expenses experienced a rise of 45 per cent from N127 billion in 2023 to N184 billion in 2024.
Speaking on the results, managing director/CEO Nigerian Breweries, Hans Essaadi revealed that, despite the continued challenging operating landscape characterised by high inflation, currency devaluation and rising input costs, the company has demonstrated resilience, as seen in the results delivered for the period ended 30th September 2024.
“The business has delivered growth in the face of the challenging operating environment. Revenue grew by 75 per cent benefitting from strategic pricing, innovation and market recovery,” Essaadi noted.
He stated that, foreign exchange losses largely influenced the company’s increase in net loss due to the naira devaluation and high borrowing costs arising from higher interest rates, and expressed optimism that the funds raised through the rights issue will strengthen the company’s balance sheet and significantly reduce its FX exposure.
Speaking on behalf of the board, the company secretary/legal director of Nigerian Breweries, Uaboi Agbebaku, reaffirmed the company’s enduring commitment to winning with Nigeria through people development, strategic innovation, operational efficiency, and community impact, adding that, the board remains confident in its long-term strategy to deliver value to shareholders.
He expressed appreciation to the trade partners, customers and all stakeholders for their immense support during these challenging times.
