Nigerian Breweries Plc recorded significant growth in 2024, nearly doubling its turnover by 81% from N599.6 billion to N1.1 trillion.
According to its audited financial report for the year ended December 31, 2024, gross profit rose by 51% from N212.6 billion in 2023 to N320 billion in 2024. Operating profit also saw a substantial increase of 59%, rising from N44 billion to N70 billion.
Managing Director of Nigerian Breweries Plc, Mr. Hans Essaadi, attributed the impressive revenue growth to strategic pricing initiatives, market expansion, successful innovations, and operational efficiencies.
He acknowledged that despite macroeconomic challenges, group operating profit increased by 54%, driven by effective cost management, process optimization, and strong operational performance.
He explained that the 34% rise in net finance costs and the 36% increase in net loss were due to higher interest rates and the impact of naira devaluation. As a result, net loss grew from N106.3 billion in 2023 to N144.9 billion in 2024.
Company Secretary and Legal Director of Nigerian Breweries Plc, Mr. Uaboi Agbebaku, stated that the company took bold steps in 2024 to address the challenges affecting net profit and strengthen its financial position.
He noted that the board secured shareholder support for the company’s business recovery plan, including a successful rights issue.
He added that these bold steps have begun to yield positive results, with the company showing strong recovery and momentum in the last quarter of 2024.
He stated that in the fourth quarter, revenue grew by 89%, while operating profit surged by 145%. Notably, net finance costs dropped by 75%, leading to a return to profitability—the first in two years.
“The return to a positive net profit position marks a major step in the company’s journey towards long term profitability and financial stability. It also reinforces the effectiveness of ongoing transformation initiatives. The proceeds from the right issues have been utilised to significantly reduce future currency risks and the board remains committed to maintaining the improved financial position,” Agbebaku stated.
He expressed gratitude to shareholders for their support on the rights issue and reaffirmed the company’s commitment to navigating Nigeria’s business challenges to sustain 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 characterized by foreign exchange volatility, limited access to foreign capital, impact of subsidy removal and naira devaluation,” he said.
