Nigerian Breweries reports N106.31bn loss in 2023

Nigerian Breweries Plc has declared a loss of N106.31billion in 2023 from N13.19billion profit after tax reported in 2022

The multinational breweries company also declared N145.22billion loss before tax in its audited result and account for the period ended December 31, 2023 as against N17.34billion profit before tax in 2022.

The losses can be attributable to N153.33billion net loss on foreign exchange transactions reported in 2023 as against N26.34billion reported in 2022.

The Group also declared N599.64billion revenue in 2023, representing an increase of nearly nine per cent from N550.64billion reported in 2022. 

Amid double-dight inflation rate, the company announced N387.03 billion cost of sales in 2023, an increase of 15 per cent from N337.31 billion in 2022, while total operating expenses stood at N171.13billion in 2023 from N163.98billion in 2022 (a growth of 4.4per cent).

The management in a statement said the Nigeria business landscape experienced significant shifts in 2023 with substantial impact on businesses and livelihoods nationwide.

“The redesign of the naira notes which resulted in cash shortage that severely hampered social and economic activities nationwide set the tone for a turbulent year. High double-digit inflation rates (with food inflation at more than 30per cent), 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.

“Notwithstanding, the Company was able to grow its revenue by nine per cent compared to the previous year aided by positive price mix. However, the operating profit fell by 15per cent due to higher input cost and one-off reorganisation cost despite strong and aggressive cost savings and other efficiency measures.

“Coupled with the impact of the devaluation of the naira which resulted in a foreign exchange loss of N153 billion, the Company recorded a net loss of N106 billion during the year.

“In a difficult operating environment, the Board will ensure that the Company builds on its more than 77 years’ experience of operating in Nigeria to cope with current realities.

“The Company will continue to be resilient and forward-thinking leveraging our broad portfolio, strong supply chain footprint and passionate workforce to drive long-term value creation for its shareholders and other stakeholders.”