Pre–AGM Media Chat: Nigerian Breweries Revs Up Revenue By 81%, Now A Trillion Naira Company
Nigerian Breweries Plc recently held its pre-annual General Meeting (AGM) media briefing in Lagos, highlighting the company’s financial performance for 2024, sustainability achievements, and financial outlook for 2025.
Speaking at the event, the company’s Managing Director, Hans Essaadi, disclosed that NB Plc is now a trillion-naira company as the organization generated N1.1 trillion in revenue, marking an 81 percent increase from the 2023 revenue of N599.5 billion.
Essaadi however, noted that the cost of goods sold rose by 98 percent, driven by the impact of the Naira devaluation and high inflation.
“Despite these challenges, our operating profit grew by 59 percent, supported by disciplined cost management,” Essaadi explained.
He further highlighted that net finance costs surged by 34 percent to N253 billion, mainly due to higher interest expenses and the foreign exchange impact.
He equally shared that the company’s results from operating activities soared by 53.7 percent from N44.49 billion in 2023 to N68.403 billion the following year.
According to him, the Nigerian Breweries’ share capital witnessed a 201.5 percent increase from N5.138 billion in 2023 to N15.492 billion in 2024.
Explaining further, Essaadi told journalists present that during the year under review, the principal activities of the company remained the business of brewing, marketing, and selling lager, stout, and non-alcoholic drinks.
He said the company’s 2024 results were shaped by a complex and challenging business environment, significantly impacting operations and livelihoods nationwide.
He also said that economic pressures, including high inflation rates and the devaluation of the naira, drove up operational costs and the price of raw materials.
He stated that Nigeria’s inflation rate soared to a near 30-year high of 34.8 percent in December 2024.
His words: “Despite these hurdles, Nigerian Breweries demonstrated resilience through strategic adaptations, including a recapitalisation of the company through a rights issue described as one of the biggest and most successful offers in the country.
“Our ambition is to leverage diversity, promote equity, and embed inclusion to create business value in a fast-changing and complex environment, which positively impacts our customers and consumers and benefits the company.”
Welcoming attendees earlier, Sade Morgan, Corporate Affairs Director, Nigerian Breweries, stated that the session was organised to share relevant information and strengthen the relationship with the media. Her words, “We are hosting this session as a precursor to our AGM to share with you all of the relevant information about our business and to strengthen our relationship with the media.
“We recognise that 2024 was a challenging year for business in Nigeria and for many businesses in Nigeria.
“This was a fallout of the economic slump of 2023, followed by a narrow decline, and all of this also led to a cash crunch, along with foreign exchange scarcity, high inflation, and a wealth crisis and we all lived through it.
“Despite these challenges, we shaped our organisation for transformational growth to meet the needs of our customers and consumers all over Nigeria and beyond.
“So we remain committed to our purpose and are perfectly in the joy of true togetherness and inspiring a better world,” she said
Speaking on the company’s sustainability achievements and plans to raise the Bar on Responsibility & Sustainability Sade Morgan and Federico Agressi, Supply Chain Director said that the company will continue to raise the bar in Brew a Better World agenda with a stronger focus on three pillars- Raising the bar on climate action, accelerating its social sustainability agenda through community impact and addressing the harmful use of alcohol
They also listed some sustainability initiatives, including investments in decarbonization and tree planting at Olokomeji forest reserve. They revealed that N2.5 billion investment was made in decarbonization and over 283,904 trees were planted at Olokomeji forest reserve. They also revealed that the company was focused on addressing harmful alcohol use, as N84 million was spent on campaigns to discourage alcohol consumption among commercial drivers.