The Board of Directors of Nigerian Breweries Plc has released the company’s unaudited financial statement for the third quarter ended September 31, declaring revenue of N402 billion for the period.
This represents a two percent increase compared to the N393 billion recorded in the 2022 corresponding period.
According to a statement signed by the Company Secretary/Legal Director, Uaboi Agbebaku, the increase in revenue was recorded despite a decline in sales volume caused by the continuing pressure on disposable income and the socio-political challenges in various parts of the country.
Agbebaku noted that due to the lower sales volume, rising input costs as a result of the high rate of inflation and the devaluation of the naira as well as a one-off restructuring cost, the operating profit declined by 23 percent from N36 billion in 2022 to N28 billion in the current period.
He added that due to higher interest costs and a huge increase in foreign exchange losses due to the devaluation of the naira, the company recorded a loss after tax of N57 billion during the period.
The loss was majorly driven by a rise in net finance costs, which rose by 546.9 percent from N16.29 billion in September 2022 to N105.4 billion in 2023.
Another factor that led to the company’s declining fortune was net loss on foreign exchange transactions of N86.8 billion which arose from the depreciation of the naira. Compared to 2022, the company posted N10.3 billion as net loss resulting from forex transaction.
The group, however, maintained a strong assets base of N709.8 billion up from N619.88 billion in December 2022, while Nigeria Breweries’ total liability rose from N440.43 billion in December 2022 to N597.38 billion
During the period under review, Nigerian Breweries loans and borrowings rose to N247.8 billion in 2023 from the N108.12 billion recorded in the corresponding period of last year.
