The Nigerian Breweries Plc's earnings report shows a N153 billion foreign exchange loss caused by the devaluation of the naira after its audited results for 2023, which was filed with the Nigerian Stock Exchange Limited.
It was recorded that an exchange rate loss of N70.6bn was incurred in the second quarter of 2023 and the company's revenue grew by 8.9 percent to N599.64bn from N550.64bn during the period under review, with net finance expense increasing significantly by 449.7 percent to N189.19bn, leading the brewer to a loss of N106.31bn, down from a gain of N13.19bn in 2022.
The Board of Directors of Nigerian Breweries noted in their financial results commentary that the business environment in Nigeria underwent major transformations in 2023, causing significant disruptions to businesses and livelihoods nationwide. The introduction of redesigned naira notes, which led to a cash shortage and severely hindered social and economic activities across the country, marked the beginning of a turbulent year.
He further added, “Notwithstanding, the Company was able to grow its revenue by 9 per cent compared to the previous year aided by a positive price mix. However, the operating profit fell by 15 per cent due to higher input cost and one-off reorganisation costs despite strong and aggressive cost savings and other efficiency measures..."
The board emphasized its ability to use its decades of experience in Nigeria to withstand the current macroeconomic pressures.
It can also be recalled that, Nigerian Breweries raised the prices of its products in August to accommodate the continued increase in input costs.
A leaked memo addressed to its customers has revealed the company's intention to implement another price hike starting next Monday. However, the impact on its products was not specified.
