Despite growing its revenue to the tune of 9 percent during the financial year that ended December 31, 2023, leading brewing company, Nigerian Breweries Plc, posted a net loss of N106 billion.
The company’s financial woes in the review financial period were further aggravated by the impact of the devaluation of the naira which resulted in a foreign exchange loss of N153 billion.
‘’Notwithstanding, the Company was able to grow its revenue by 9% compared to the previous year aided by a positive price mix. However, the operating profit fell by 15% due to higher input costs and one-off reorganisation costs despite strong and aggressive cost savings and other efficiency measures,’’ a statement from NB Plc disclosed.
Comments attributed to the company in the results filed with the Nigerian Exchange Limited, said, ‘’The Nigerian business landscape experienced significant shifts in 2023 with a substantial impact on businesses and livelihoods nationwide. The redesign of the naira notes which resulted in a cash shortage that severely hampered social and economic activities nationwide set the tone for a turbulent year.
“High double-digit inflation rates (with food inflation at more than 30%), removal of subsidy on premium motor spirit (fuel), devaluation of the naira, and foreign exchange scarcity further exacerbated the already difficult environment for the populace and businesses.’’
Meanwhile, the Board of Directors is confident that the company will weather the storm in the days ahead.
“In a difficult operating environment, the Board will ensure that the Company builds on its more than 77 years of experience of operating in Nigeria to cope with current realities. The Company will continue to be resilient and forward-thinking leveraging our broad portfolio, strong supply chain footprint and passionate workforce to drive long-term value creation for its shareholders and other stakeholders,’’ NB Plc said.
