Nigerian Breweries Plc Reports Robust Financial Recovery with Significant Revenue Surge in 2024
Nigerian Breweries Plc has announced a remarkable financial turnaround, posting a revenue of N1.467 trillion for the fiscal year concluding December 2024. This figure represents a substantial 35 per cent increase compared to the N1.08 trillion recorded in the same period of 2023. The impressive performance, detailed in the company’s audited full-year results submitted to the Nigerian Exchange Limited, signals a strong recovery from a challenging 2023, which was largely impacted by prevailing macroeconomic headwinds.
The audited financial statements reveal a significant uplift across key performance indicators. The company’s gross profit experienced a dramatic surge of 77 per cent, climbing from N319.92 billion in 2023 to N565.18 billion in 2024. This growth was achieved despite an increase in the Cost of Sales, which rose from N764.52 billion in 2023 to N902.24 billion in the 2024 fiscal year. Simultaneously, Marketing, Distribution, and Administration expenses saw a notable increase of 43 per cent, escalating from N254.05 billion in 2023 to N364.14 billion in 2024.
In an accompanying statement, Uaboi Agbebaku, Company Secretary and Legal Director of Nigerian Breweries Plc, attributed the 35 per cent revenue growth to a multi-pronged strategy. This included a consistent focus on innovation, the strategic premiumisation of its product offerings, effective pricing strategies, and robust commercial execution. Agbebaku further elaborated that the rise in operating profit is a direct consequence of stringent cost discipline, enhanced productivity, and improved supply-chain efficiencies, all underpinned by the comprehensive 2023 business recovery plan.
Key Financial Highlights and Strategic Drivers:
- Revenue Growth: A 35 per cent increase in revenue, reaching N1.467 trillion in 2024.
- Gross Profit Expansion: A 77 per cent jump in gross profit, from N319.92 billion to N565.18 billion.
- Operating Profit Rebound: Group operating profit saw an impressive increase of over 190 per cent. This surge is directly linked to the revenue growth, rigorous cost management, productivity enhancements, and supply chain efficiencies implemented as part of the 2023 recovery initiatives.
- Net Profit Turnaround: The group’s net profit experienced a significant rebound, growing by 168 per cent from a net loss position in the previous year. This turnaround was significantly bolstered by an 83 per cent reduction in net finance costs. This reduction was a direct result of the successful 2023 Rights Issue, which effectively deleveraged the company’s balance sheet and mitigated foreign currency exposures.
Despite the overwhelmingly positive financial results for 2024, the company’s retained earnings position remains in negative territory. This is a consequence of substantial net losses incurred over the past two years. However, the board expressed satisfaction with the progress made in reversing this negative position, noting that the journey is proceeding as anticipated.
A significant strategic development during 2024 was the full acquisition and subsequent integration of Distell Wines and Spirits Nigeria Limited. While this integration incurred a one-off cost, it is strategically positioned to enhance the company’s beyond-beer portfolio and contribute significantly to its long-term growth prospects.
The company secretary conveyed a strong message of confidence to stakeholders, emphasizing that with continued shareholder support and a steadfast commitment to agility, innovation, effective revenue optimisation, and prudent financial management, Nigerian Breweries Plc is well-equipped to achieve sustainable growth and deliver enduring long-term value. The company’s strategic focus on diversification and operational excellence positions it favourably for continued success in the dynamic market landscape.
