After N106bn Loss, Nigerian Breweries Increases Prices of Gulder, Star, Others, Second Hike in 2024
- Nigerian Breweries has said it is implementing another price increase in its products, including Gulder, Star, Heineken, and others
- It explained that the alarming increase in output cost led to the decision to hike its price for the second time in 2024
- Last year, macroeconomic issues such as high inflation and forex issues, among others, eroded the profit of the firm
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Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
Nigerian Breweries is set to effect another increase in the price of its products in an announcement by the company to customers.
The company stated that the new price will be effective Friday, March 15, 2024.
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It explained that the upward review is necessary considering the continued rising output witnessed in the country.
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It stated:
“As earlier informed, we will review some of our SKU prices effective Friday, 15th March 2024. This review has become necessary because of the continued rising input cost and the need to mitigate the impact.
“All open orders in our system at 00.00hrs on Friday 15th of March, 2024, will be invoiced at the new prices.”
The company, however, has yet to announce the specific items that are affected or how much the items will be inflated.
The development comes barely a month after it announced an initial price increase on some of its products, effective Monday, February 19, 2024.
According to a price list shared by an X user @OBAF4U, the development meant that the products of the firm as of the time adjusted to the new prices as followed:
- Gulder – N950
- Star – N850
- 33 Extra – N850
- Heineken – 1,300
- Life – N850
- Legend – N1,250
- Tiger – N750
NB reported loss
In its financial report for 2023, the company made a loss of N106 billion for the period compared to the N13 billion profit it realised a year before.
The loss is despite a revenue increase from N551 billion to N600 billion, a 9% increase during the period
The company explained that the Nigerian business landscape, which experienced a significant shift in 2023 with a substantial impact on businesses and livelihoods nationwide, affected the company's performance.
It stated,
“The redesign of the naira notes, which resulted in a cash shortage, severely hampered social and economic activities nationwide and 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.”
CEO speaks after release of new price list
Legit.ng reported that Hans Essaadi, the chief executive officer of Nigerian Breweries Plc, revealed that Nigerians can no longer afford to buy beer due to the economic situation.
Essaadi stated this at the company's investor call following the release of its 2023 results on Monday, February 19, 2024.
According to Bloomberg, the previous year (2023) was challenging for the company in terms of sales.
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Source: Legit.ng
