National Telescope national telescope newspaper
According to Hans Essaadi, the CEO of Nigerian Breweries Plc, the country’s economic status has deteriorated so bad that its citizens can no longer afford to purchase beer.
During the company’s investor call on Monday after the release of its 2023 results, Essaadi made this statement.
“This year has been exceptional for our company in Nigeria. Because Nigerian consumers can no longer afford a Goldberg after a long day at work, we observed an enormous decrease in the mainstream lager market, Bloomberg quoted Essaadi as saying.
The devaluation of the naira caused NB to lose N153 billion in foreign exchange during the year that ended in December 2023.
During the reviewed period, the company experienced an 8.9% growth in revenue.
The company’s sales grew by 8.9% over the reviewed period, from N550.64 billion to N599.64 billion. The Brewer noticed a loss of N106.31 billion at the end of 2022, down from a gain of N13.19 billion due to a notable rise in net finance expense of 449.7% to N189.19 billion.
The NB Board of Directors stated, “The Nigerian business landscape experienced significant shifts in 2023 with substantial impact on businesses and livelihoods nationwide,” in statements that accompanied the financial results. A chaotic year was ushered in by the redesign of the naira notes, which caused a cash scarcity that significantly hindered social and economic activity across the country.
“High double-digit rates of inflation (food inflation over thirty percent), the elimination of premium motor spirit (fuel) subsidies,
The naira’s devaluation and the lack of foreign money made the already difficult circumstances for consumers as well as companies worse.
“The company was able to grow its revenue by nine percent when compared to the previous year aided by a positive price mix,” he continued, despite the challenges. However, despite significant and aggressive cost savings and other efficiency initiatives, the operating profit dropped by 15% as a result of increasing input costs and one-time reorganisation expenses. The Company had a net loss of N106 billion for the year due to the devaluation of the naira and the resulting foreign exchange loss of N153 billion.
The board continued by expressing its readiness to draw on its many years of operational experience in Nigeria will endure the present macroeconomic difficulties.
“The board will make sure that the company builds on its more than 77 years of operating experience in Nigeria to cope with contemporary realities in a challenging operating environment. The board announced, “The company will remain resilient and forward-thinking, driving long-term value creation for its shareholders and other stakeholders through the use of our broad portfolio, strong supply chain footprint, and passionate workforce.”
To account for a steady increase in input costs, NB raised the prices of its products in August.
Star Lager, Gulder, Legend Extra Stout, Heineken, Goldberg, Life, and Star Radler are just a some of the alcoholic beverages that NB makes.
In June 2023, the Nigerian Central Bank harmonised the various foreign exchange market divisions, resulting the Naira devaluation. Multiple companies who claimed FX losses felt the impact. But the financial industry fared better, benefiting from gains in FX revaluation.
