Nigerian Breweries Plc has reported a 75 per cent growth in revenue for the third quarter of 2024, ended September 30.
Nigerian Breweries generated N703 billion in revenue, compared to N402 billion recorded during the same period in 2023.
The unaudited reports, released to the Nigerian Exchange Group (NGX), were accompanied by remarks from the Managing Director, Hans Essaadi, who highlighted that the company’s strong performance was fueled by strategic pricing, innovation, and market recovery. The company’s gross profit rose by 36 per cent, reaching N207 billion in Q3 2024, up from N152 billion in the previous year.
Essaadi explained that the gross profit growth was tempered by a significant rise in the cost of goods sold, which surged by 99 per cent, largely due to currency devaluation and escalating input costs. Cost of sales, he said, increased from N249 billion in 2023 to N495 billion in 2024.
“In addition, marketing, distribution, and administrative expenses saw a 45 per cent jump, moving from N127 billion in Q3 2023 to N184 billion in 2024,” he said.
Essaadi also indicated that foreign exchange losses, stemming from the devaluation of the naira, and rising borrowing costs, impacted the company’s overall financial performance.
According to him, despite the continued tough operating environment, the firm managed to deliver solid results. “The business grew by 75 percent in revenue, benefitting from our pricing strategy, innovative products, and market recovery,” he said.
He acknowledged that the company’s net loss was exacerbated by foreign exchange losses and higher interest rates but expressed confidence that funds raised through a recent rights issue would strengthen the balance sheet and reduce foreign exchange exposure.
The company’s Secretary and Legal Director, Uaboi Agbebaku, reiterated the organisation’s commitment to the nation, underscoring its focus on people development, strategic innovation, and operational efficiency. “The company remained optimistic about delivering long-term value to its shareholders despite the current economic challenges,” Agbebaku added.
Credit: thenationonlineng.net
