Shareholders Rejoice as Nigerian Breweries Exceeds N1 Trillion in Revenue
- Nigerian Breweries Plc has hit a new milestone, raking in over N1 trillion in revenue in the 2024 financial year
- The current revenue nearly doubles the 2023 revenue, despite the economic headwinds that plagued businesses in 2024
- The company is also on route to achieving financial health, after posting a net profit after almost two years
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
It is a time of rejoicing for shareholders of the Nigerian Breweries Plc, as the company has crossed the N1 trillion revenue milestone.
The recently released financial results for FY 2024 show that the group recorded an impressive N1.1 trillion for the year, up 81% from the N599.6 billion recorded in FY 2023.
Despite the hike in input costs, Gross profit also grew 51% to N320 billion in 2024, from N212.6 billion in the previous year, while operating profit grew 59% from N44 billion in 2023 to N70 billion in 2024.
Source: UGC
Nigerian Breweries records huge profits despite inflation
The Managing Director of Nigerian Breweries Plc, Hans Essaadi noted that these impressive results came despite strong macroeconomic headwinds during the years.
He said that the group employed strategic pricing initiatives, alongside market expansions and strategic innovation to drive operational efficiencies.
The results thus reflect the process optimization and cost management strategies implemented during the year.
Net finance costs also went up during the year, driven by the raised interest rates, and the naira devaluation against the dollar.
Nigerian Breweries returns to profitability
The recent results also show that the company has returned to profitability after addressing the issues that impacted its finances, ThisDay reports.
A statement signed by Mr. Uaboi Agbebaku, the company’s legal Director and Company Secretary, disclosed that the group obtained shareholders' support and successfully implemented its business recovery plan.
This resulted in strong positive results particularly in the last quarter of 2024, the first since 2022.
“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.”
He assured shareholders that the company will continue to evolve and rise to combat evolving challenges while ensuring profitability.
Recall that other FMCG companies including Unilever Plc posted a loss in 2024, in what many businesses have described as one of the most challenging business years so far.
Businesses in the oil and gas sector however recorded impressive profits in the year, driven by reforms in the sector and the total deregulation. Aradel Holdings also posted a profit after tax (PAT) of N247.79 billion in 2024, even though it only listed on the NGX midway through the year.
Nigerian Breweries Close Two Plants Over Losses
In related news, Nigerian Breweries Plc announced the temporary closure of two of its nine breweries in Nigeria, after posting the highest FX loss in its 77-year history in Nigeria.
This was part of its business recovery plan after recording N153 billion net losses in the 2023 financial year.
The beer maker explained that its decision to shut down the plants was part of a comprehensive restructuring of its operations, prompted by various financial and operational challenges in the previous year.
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Source: Legit.ng
