Nigerian Breweries Plc has announced another rise in the prices of its products, after the last hike in February. The next pricing review will take effect from March 15th, 2024.
The company stated this in a review notice given to consumers in the South-West zone, signed by its zonal business manager. According to the notice, the current price review is based on the need to reduce the effect of increased input costs.
It stated, “As earlier informed, we will review the prices of some of our SKUs effective Friday, 15th March, 2024. This review has become necessary because of the continued rising input cost and the need to mitigate the impact. The company however assured its distributors that it will continue to assist their sales and distribution efforts.
Earlier in February, the Nigerian Breweries' price increase was justified by the growing cost of production and the necessity to protect the company from it.
Over the last year, companies in the manufacturing and FMCG sectors have faced considerable increases in input costs due to the naira's depreciation, as imported raw materials become more expensive. Nigerian Breweries' problems are part of a larger trend.
In 2023, Nigeria's difficult macroeconomic conditions had a significant influence on the running of domestic and foreign manufacturing companies within the country. This resulted in major departures and closures by the end of the year.
In addition, inflation has had a substantial impact on patronage, as revealed by CEO Hans Essaadi during the 2023 result presentation, who mentioned that consumers can no longer afford Goldberg. He also mentioned inflation, growing input costs, and squeezed consumer spending as problems that the company will face in 2024.
For the fiscal year ending December 2023, the company reported a net loss of N106 billion, mostly from its FX losses of N153 billion.
