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Despite the challenging economic environment, Nigerian Breweries Plc, the leading brewing company in Nigeria, has assured existing and prospective investors of its commitment to sustainable growth.
The company’s Managing Director/Chief Executive Officer, Hans Essaadi, made this assertion while briefing the media on the company’s financial and operational performance for the year ended December 31, 2024, ahead of its 79th Annual General Meeting (AGM).
Essaadi noted that the industry was not immune to the macroeconomic challenges, which had impacted the cost of doing business and profitability.
However, the company recorded a modest growth in the market, driven mainly by price increases aimed at mitigating the consistent increase in input costs. The company generated N1.1 trillion in revenue for the financial year, representing an 81% increase from the previous year’s revenue of N599.5 billion.
The company’s revenue growth was driven by price increases, despite a 98% rise in the cost of goods sold, fueled by high inflation and the impact of the Naira devaluation. Although the company recorded a net loss due to the heavy impact of the economic challenges, Essaadi expressed confidence in the company’s ability to overcome them and deliver sustainable growth.
To address the challenges, the company implemented a business recovery plan, which included a rights issue that raised N548.7 billion, achieving a 91.6% success rate. The plan also involved decisive actions to restore the company’s profit and loss account, as well as its balance sheet.
The company’s Finance Director, Bermabdus A Wessels Boer, highlighted the impact of higher interest expenses and devaluation of the Naira on the company’s financial performance. However, he noted that the company remains committed to taking decisive actions to overcome the challenges.
In terms of innovation, the company’s Marketing Director, Emmanuel Oriakhi, highlighted the launch of new products, including the sleek and stylish Heineken larger 45cl bottle, Legend Twist in Lemon, ginger, and pineapple flavors, and a draught offering for Legend Extra Stout.
The company also made significant progress in its sustainability initiatives, including the investment of N168 million in a skills acquisition center in Kakuri, Kaduna State, and a cassava milling plant in Awo-Omamma, Imo State. The company also commenced the commissioning of solar power systems at its Lagos and Aba breweries and signed a transformational renewable energy contract to supply 100% renewable electricity.
The company’s Corporate Affairs Director, Sade Morgan, and Sales Chain Director, Federico Agressi, highlighted the company’s commitment to driving impactful initiatives that benefit both communities and the environment through its Brew a Better World (BaBW) sustainability framework.
The company also prioritized employee growth and development, implementing initiatives to support employee satisfaction and morale. The company’s Digital and Technology Director, Philomena Aneke, highlighted the company’s digital transformation journey, which included the digitization of processes related to the root-to-consumer value chain.
Overall, Nigerian Breweries Plc remains committed to sustainable growth and is taking decisive actions to address the challenges and capitalize on opportunities in the market.
