Strategic Resilience and Market Expansion Propel Brewer’s Return to Profitability
Hans Essaadi, Managing Director/CEO of Nigerian Breweries Plc
Nigerian Breweries Plc has marked a historic financial year, surpassing the N1 trillion revenue threshold in 2024—a significant 81% surge from the N599.6 billion recorded in 2023. The brewer’s latest audited financial statements cited on the Nigerian Exchange Ltd (NGX) traded data underscore a strong comeback, demonstrating resilience in the face of economic headwinds.
A deeper dive into the company’s performance reveals that group gross profit climbed 51% to N320 billion, up from N212.6 billion in the prior year. Likewise, operating profit surged by 59% to N70 billion, despite persistent challenges posed by rising input costs.
Hans Essaadi, Managing Director/CEO of Nigerian Breweries Plc, attributed the remarkable revenue growth to a combination of strategic pricing initiatives, market expansion, product innovations, and enhanced operational efficiencies.
“Despite macroeconomic headwinds, our group operating profit increased by 54%, driven by disciplined cost management, process optimization, and a resilient operational strategy,” Essaadi stated.
However, the brewer faced mounting financial pressures, with net finance costs rising by 34% and net losses expanding by 36%—from N106.3 billion in 2023 to N144.9 billion in 2024. The company cited escalating interest rates and the impact of naira devaluation as key factors behind these figures.
Turning the Tide: Bold Strategies Yield Recovery
In response to financial setbacks, Nigerian Breweries took decisive steps in 2024 to fortify its financial position. According to Uaboi Agbebaku, Company Secretary/Legal Director, these efforts included securing shareholder support for a business recovery plan, notably a successful Rights Issue.
The results of these measures became evident in Q4 2024, when the company recorded an 89% revenue increase, a 145% rise in operating profit, and a remarkable 75% reduction in net finance costs. These gains propelled the brewer back to profitability—the first time in two years—marking a major milestone in its recovery journey.
“This turnaround underscores the effectiveness of our ongoing transformation initiatives. The proceeds from the Rights Issue have been instrumental in mitigating future currency risks, and the Board remains committed to sustaining this improved financial trajectory,” Agbebaku noted.
Steering Through Economic Uncertainties
Despite the volatile business environment—characterized by foreign exchange fluctuations, restricted access to foreign capital, subsidy removals, and naira devaluation—Nigerian Breweries remains steadfast in its pursuit of sustainable growth.
“As the economic landscape continues to evolve, we remain focused on agility, innovation, and operational excellence, ensuring we are well-positioned for future opportunities while navigating ongoing challenges,” Essaadi affirmed.
With a renewed financial outlook and strategic momentum, Nigerian Breweries’ journey toward long-term profitability is firmly underway.
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