Nigerian Breweries Achieves 74.9% Revenue Growth In Q3 2024

Nigerian Breweries Plc has reported an impressive 74.9 percent year-on-year revenue growth for the third quarter ended September 30, 2024.

The recent unaudited results, released to the Nigerian Exchange Group (NGX), reveal that the company’s revenue surged to N703 billion, a significant increase from N402 billion recorded in the same period in 2023. This growth reflects the company’s effective pricing strategies, innovation efforts, and market recovery initiatives amid challenging economic conditions.

The Q3 financial report shows that gross profit rose 36 percent, reaching N207 billion, compared to N152 billion in Q3 2023. However, gross profit growth trailed behind revenue, largely due to a sharp 99 percent increase in the cost of goods sold, driven by currency devaluation and rising input costs. The cost of sales nearly doubled, from N249 billion in 2023 to N495 billion in 2024. Additionally, marketing, distribution, and administrative expenses increased by 45 percent, totalling N184 billion, up from N127 billion last year.

Mr. Hans Essaadi, Managing Director (MD)\ Chief Executive Officer (CEO) of Nigerian Breweries Plc, remarked on the results, stating: “Despite a challenging operating environment characterised by high inflation, currency devaluation, and rising input costs, our business has demonstrated resilience. Revenue grew by 75 percent, benefiting from strategic pricing, innovation, and market recovery.”

Mr. Essaadi acknowledged the impact of foreign exchange losses on the company’s net loss, which increased due to the Naira’s devaluation and elevated borrowing costs amid high interest rates. He expressed optimism that the recent funds raised through a rights issue will fortify the company’s balance sheet and reduce its foreign exchange exposure.

Reflecting the Board’s perspective, Mr. Uaboi Agbebaku, Company Secretary and Legal Director of Nigerian Breweries, highlighted the company’s enduring commitment to “Winning with Nigeria” through people development, strategic innovation, and community impact.

He also expressed gratitude to trade partners, customers, and stakeholders for their unwavering support during challenging times.

Nigerian Breweries Plc’s Q3 2024 performance underscores its adaptability and commitment to delivering shareholder value, even as it navigates Nigeria’s challenging economic landscape.