Nigerian Breweries Plc has announced impressive financial results for the third quarter ending September 30, 2024, posting revenue of ₦703 billion, marking a 75% increase compared to ₦402 billion in the same period last year.
Mr. Hans Essaadi, the Managing Director of Nigerian Breweries Plc, shared these results in an unaudited report sent to the Nigerian Exchange Group (NGX) on Thursday in Lagos. He highlighted that the company’s gross profit rose to ₦207 billion, up from ₦152 billion in Q3 2023, representing a 36% increase.
Essaadi attributed the growth in gross profit to a significant 99% surge in the cost of goods sold, which was primarily driven by currency devaluation and increased input costs. The total cost of sales escalated from ₦249 billion in 2023 to ₦495 billion in 2024.
He also noted that marketing, distribution, and administration expenses rose by 45%, increasing from ₦127 billion in 2023 to ₦184 billion in the current quarter.
Despite operating in a challenging environment marked by high inflation, currency fluctuations, and rising input costs, Essaadi emphasized the company’s resilience. “The business has delivered growth in the face of the challenging operating environment. Revenue grew by 75%, benefitting from strategic pricing, innovation, and market recovery,” he stated.
However, he pointed out that foreign exchange losses significantly impacted the company’s net loss, stemming from Naira devaluation and high borrowing costs associated with increased interest rates. Essaadi expressed optimism that funds raised through a rights issue would enhance the company’s balance sheet and mitigate foreign exchange exposure