Nigerians Consume Beverages Worth Over $1 Billion In 6 Months – Report
Nigerian consumers spent over a billion dollars on the consumption of beverages such as alcoholic and non-alcoholic drinks in the first half of 2022.
This is according to data mined from financial statements of the largest beverage-making companies in the country listed on the NGX.
According to NairaMetric report; Brewery giants, Nigerian Breweries, Guinness, and International Breweries all reported double-digit growth in their revenues as Nigerians guzzled their products despite a dip in purchasing power and galloping inflation. Non-alcoholic beverage makers such as Nestle, Cadbury and Friesland Campina also reported similar revenue growth as Nigerians drank more chocolate drinks.
These companies between them sell some of the biggest beverage brands consumed by Nigerians. For example, Nigeria Breweries sells Star and Maltina, while Guinness sells Guinness Stout, Orijin and Malta Guinness. Nestle sells Milo Nescafe, and Golden Mourn. FrieslandCampina is the maker of Peak Milk and Three Crowns.
A cursory analysis of the results of the companies under review shows total revenue generated from beverages alone stood at N763.9 billion as against N587.5 billion reported a year earlier.
The report further revealed that the 28.5% growth in beverage revenue over the last one year indicates how strong demand still is for beverages despite cost pressures arising from taxes and price increases.
At N593.2 billion for the first half of the year alone, the companies are on track to top a trillion in beverage sales this year alone.
This result excludes over a dozen larger beverage makers who are not quoted on the Nigerian Exchange.
This suggests the actual revenue in the first half of this year will be much higher when added to the revenue generated by the 5 beverage giants.
Nigerians appear to spend most of their money on beer in the first half of the year helping the likes of Nigeria Breweries, Guinness, and International Breweries to a combined revenue of N483.1 billion as against N379.2 billion same period in 2021.
Nestle also reported a significant rise in beverage sales, reporting a sale of N90 billion up from N70.2 billion. FrieslandCampina which makes milk products also saw its revenue boosted from N125.7 billion to N170.7 billion in the first half of the year.