The nation’s business is looking good for the brewery giant, Nigerian Breweries Plc as fortune smiled on the company such that it was able to gross N1.1 trillion in revenue at the close of its financial year-end results in December, 2024.
An elated Managing Director, Hans Essaadi, who disclosed this at the company’s pre-annual general meeting media briefing in Lagos, last Thursday, said the N1.1 trillion revenue marks an 81 per cent increase from the company’s 2023 revenue of N599.5 billion.
“Despite these challenges, our operating profit grew by 59 per cent, supported by disciplined cost management,” Essaadi added.
He explained that net finance costs surged by 34 per cent to N253 billion, mainly due to higher interest expenses and the foreign exchange impact on payables.
“This weighed heavily on the bottom line, pushing our net loss up by 36 per cent to N145 billion,” he said.
Essaadi noted that the company’s results from operating activities soared by 53.7 per cent from N44.49 billion in 2023 to N68.403 billion in 2024.
He said the loss for the year 2024 stood at N144.338 billion, a 36.5 per cent increase from the company’s loss of N105.769 billion in 2023.
According to him, the Nigerian Breweries’ share capital witnessed a 201.5 per cent increase from N5.138 billion in 2023 to N15.492 billion in 2024.He explained that there was also a 614.2 per cent surge in the company’s total equity from N65.17 billion in 2023 to N465.47 billion in 2024
The company’s 2024 results, Hans reiterated, were shaped by a complex and challenging business environment, significantly impacting operations and livelihoods nationwide.
He said that economic pressures, including high inflation rates and the devaluation of the naira, drove up operational costs and the price of raw materials.
He explained that Nigeria’s inflation rate soared to a near 30-year high of 34.8 per cent in December 2024.
“In spite of these hurdles, Nigerian Breweries demonstrated resilience through strategic adaptations, including a recapitalisation of the company through a rights issue.
“It was also resilient through increased local sourcing, innovation and further diversification through the completion of the acquisition of majority stakes in Distell Wines and Spirits Nigeria Ltd.
“Our ambition is to leverage diversity, promote equity, and embed inclusion to create business value in a fast-changing and complex environment, which positively impacts our customers and consumers and benefits the company,” he said.
Also, Sade Morgan, Corporate Affairs Director, Nigerian Breweries, said, “We are hosting this session as a precursor to our AGM to share with you all of the relevant information about our business and to strengthen our relationship with the media.
“We recognise that 2024 was a challenging year for business in Nigeria and for many businesses in Nigeria. This was a fallout of the economic slump of 2023, followed by a narrow decline, and all of this also led to a cash crunch, along with foreign exchange scarcity, high inflation and a wealth crisis and we all lived through it.
“In spite of these challenges, we shaped our organisation for transformational growth to meet the needs of our customers and consumers all over Nigeria and beyond. So we remain committed to our purpose and are perfectly in the joy of true togetherness and inspiring a better world,” she said.
Meanwhile, in line with its “Brew a Better World” agenda, the brewing company has reaffirmed its commitment to sustainability through initiatives hinged on three key pillars: Environment, Social and Responsible.
Expatiating, Morgan noted that the company would continue to raise the bar in sustainability to drive its Brew a Better World(BaBw) agenda through innovations and collaborations that will protect and preserve the environment, support local communities, and ensure responsible alcohol use.
“Sustainability remains at the heart of our business. We continue to raise the bar on our Brew a Better World agenda, focusing on three pillars of climate action, accelerating the social sustainability agenda through community impact, and addressing the harmful use of alcohol,” she said.
She explained further that the company is committed to achieving its carbon neutrality goal across its production facilities by adopting green and renewable energy sources, maximising the circularity of the products, and giving input and output materials a second life.
Reeling out the environmental stewardship scorecard, Morgan explained that the company has invested about N2.5 billion in decarbonising its footprints.
She revealed that the company had achieved 98% of its Zero-Waste to Landfill target and planted 283,904 trees at the Olokomeji forest reserve to restore a healthy watershed.
She added that all seven of the company’s operational breweries are equipped with functional wastewater treatment plants.
On the social pillar, she disclosed that the company recently invested N168m in the Skills Acquisition Centre and Cassava Milling Plant donated to Kaduna and AwoOmamma Communities, ensuring 100% fair living and working standards for employees and non-employees alike.
She also noted that the 10th edition of the Maltina Teacher of the Year Competition was held in 2024, and 37 teachers were recognised across the 36 states and the FCT.
Speaking further, Morgan revealed that on the Responsible pillar, the company recently spent N84 million addressing harmful alcohol use by commercial drivers and moderation.
She noted that over 500 commercial drivers were reached and enlightened on the dangers of alcoholic consumption while driving.
She also hinted that the company committed N67.3m to media spend, with a campaign reaching over 25 million people.
