Nigerian Breweries Plc has recorded a 73 per cent increase in revenue in the half-year period which ended on June 30, 2024.
The unaudited results, which were released to the Nigerian Exchange Group (NGX), also revealed a 34 per cent increase in operating profit in the period despite the challenging operating environment characterised by soaring inflation, exchange rate volatility, security challenges, elevated input costs, and rising cost of living.
Speaking on the result on Wednesday, July 31, 2024, the Managing Director/CEO of Nigerian Breweries Plc, Hans Essaadi, said: “In the six months ended 30 June 2024, Nigerian Breweries demonstrated resilience and is on the path to recovery as seen in the results delivered despite the challenging external environment characterized by high inflation and heightening operating costs.
“Our revenue grew by 73 per cent in the half-year compared to the same period in 2023. The growth was driven by strategic pricing, innovation volume growth, and market recovery.
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“Cost of sales, distribution, and admin expenses increased by 46 per cent, largely due to inflationary pressure and forex devaluation impacting imported materials. We also continue to invest behind our brands and categories and support the recovery of the market.”
Essaadi further disclosed that the company is in the process of initiating a Rights Issue to raise up to N600 billion in additional capital to restore the business to profitability and enhance operational and financial stability as part of its resilient and forward-thinking strategy.
He added: “The funds raised will be used to eliminate our foreign exchange-denominated debts and reduce our local debts, thereby mitigating our exposure to the continuing economic challenges. Through our cost-saving and other efficiencies initiatives, we recorded a 34 per cent increase in operating profit, signalling the resilience and strength of our operations.
“We are conscious of the continued challenging operating environment with double-digit inflation and pressured consumer income spending. However, we continue to focus on our strategy to deliver value to our shareholders while contributing to the country’s economic development.”
Speaking on behalf of the Board, Legal Director and Company Secretary, Uaboi Agbebaku, assured that “the Board remains confident in our long-term strategy to deliver value to our shareholders and re-affirms the company’s enduring commitment to winning with Nigeria through people development, strategic innovation, operational efficiency, and community impact.”
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