Nigerian Breweries Sees Business Growth Despite Forex Scarcity, Insecurity, Other Challenges
The Nigerian economy has been plagued by various challenges, including forex scarcity, insecurity, and inflation. Despite these challenges, Nigerian Breweries Plc, one of the largest beer companies in Nigeria, has seen growth in its operations.
This is as the company reaffirmed its commitment to investing in Nigeria despite the lingering challenges. The company in its financial results for the year ended 31 December 2022 reported a net revenue growth of 26% to ₦550.838 billion in 2022, up from ₦276.872 billion in 2021 while profit after tax grew by 4% to ₦13.187 billion from ₦12.672 billion in 2021.
Cost of sales rose to 22% to N33.7.310 billion in 2022 from N276.872 billion in 2021 while profit after tax grew by 4% to N13.187 billion from N12.672 billion in 2021.
The Managing Director and Chief Executive Officer, Nigerian Breweries Plc, Mr. Hans Essaadi, while speaking to Journalists at the Pre-Annual General Meeting held in Lagos on Wednesday said he is optimistic that sales would bounce back despite the harsh business terrain, adding that the company’s long-term view and commitment to Nigeria remain the same.
“For over 77 years, we have built a strong legacy weathering so many storms. We have been faced and are still being faced by storms, especially with the Russia-Ukraine crisis that has made the price of diesel skyrocket. We are optimistic that we would sail through like we have always done over the past 77 years,” he said.
He added that “The insecurity situation is also a major challenge as it is hindering both local and foreign investments in the country,” he said.
He lamented that the first half of 2023 has been extremely difficult for industries including the scarcity of foreign exchange still lingers. However, he explained that the company’s collaboration with relevant local and international research institutes had been expanded to further assess and improve the performance and adaptability of selected registered local sorghum varieties.
He stated that the collaboration will help in the development of new sorghum varieties with improved quality for the industry and increased yield for farmers.
In his outlook for 2023, the Nigerian Breweries boss said with the benefit of an enabling environment, the Nigerian beer market fundamentals remain positive with growth potentials, but bemoaned that Nigeria’s macro-economic indicators, security, and infrastructure however continue to remain high-risk.
He further stated that lower disposable income and high input costs as a result of inflation and naira devaluation are putting margins under pressure, stressing that additional excuse burden will further cripple business performance in 2023 while also expressing concerns on the prolonged forex scarcity.
Also speaking, the Corporate Affairs Director, Nigerian Breweries Plc, Mrs. Sade Morgan, said sustainability is at the heart of Nigerian Breweries’ business, stressing that the company has continued to make steady progress on its Brew a Better World agenda focusing on raising the bar on climate action, accelerating its social sustainability agenda through community impact and advocating the moderate consumption of alcohol.
The company has supported various initiatives aimed at improving the
lives of people in the communities where it operates. Its social investments include; education, health, and environmental sustainability, among others.