Nigerian Breweries Plc says the rising inflation in the country, naira devaluation, foreign exchange scarcity among many other macroeconomic indices negatively impacted on its profitability in 2023.
Addressing journalists at the pre-annual general meeting press conference in Lagos recently, Managing Director/CEO of NB Plc, Hans Essaadi, said while the company’s revenue grew from N551 billion in 2022 to N600 billion in 2023, operating profit declined by 15 per cent from N53 billion in 2022 to N45 billion in 2023 due to higher cost and one-off reorganization cost.
“However, despite the strong and aggressive cost savings measures, the company recorded a net loss of N106 billion due to the impact of naira devaluation which resulted in foreign exchange loss of N153 billion, and interest costs on loans and borrowing for capacity expansion.”
He noted that the company’s long-term outlook remained positive with Nigeria’s young population and its position as the largest economy in Africa to spur growth and improved performance going forward.
“The outlook for market fundamentals remains positive with positive long-term fundamentals such as rising and young population, urbanisation, and the largest economy in Africa.”
“Our 2024 recipe for success is hinged on our strong business recovery plan to continue strong cost management and further optimization of our operational footprint.”
“We would continue to leverage our strong portfolio, exciting innovations, delight our customers with exciting new portfolios, while prioritising our employees, communities and stakeholders,”
Earlier in his remark, the company’s marketing director, Emmanuel Oriakhi stated that while 2023 was tumultuous, NB PLC remained focused on strategic initiatives of driving cost efficiency, market leadership through the rich portfolio of its strong brands.
