Nigerian Breweries Plc, the leading brewing company in Nigeria, recently announced its unaudited and provisional results for the first half of the year ending June 30, 2023, disclosing a revenue of N277 billion. Although the company experienced a minor increase in revenue compared to the corresponding period in the previous year, it encountered several challenges during the first half.
Uaboi Agbebaku, the Company Secretary/Legal Director, attributed the first-half performance to factors such as the depreciation of the naira, which led to foreign currency obligation revaluation and higher input expenses. The impact of ending petroleum subsidies, costs incurred due to redundant employee actions, and a cash crunch in the first quarter also contributed to Nigerian Breweries Plc recording a loss of N47 billion after tax in the half-year.
Despite the challenges, Agbebaku highlighted that the company managed to surpass its operating profit for Quarter 2 by more than 100% compared to the same period in 2022. This remarkable performance was driven by the company’s focus on premium products, effective expense management, and favorable price points. Moreover, the operating profit for Q2 2023 showed improvement over Q1 2023.
Looking forward, the board remains optimistic about the long-term benefits that may result from current Federal Government policy reforms. They reaffirmed their commitment to creating sustainable value for the company’s investors while navigating through the existing challenges.