Nigerian Breweries’ half-year loss widens to N116.34bn

Nigerian Breweries Plc posted a loss after tax of N116.34 billion in the first half of this year, up from N67.84 billion in the same period of 2023.

Its earnings report released on Tuesday shows that the brewer’s revenue rose to N479.77 billion from N277.42 billion. 

The company said it continued to navigate the challenging operating environment characterised by soaring inflation, exchange rate volatility, security challenges, elevated input costs, and rising cost of living. 

“Despite these headwinds, the company has demonstrated resilience and is on the path to recovery in its operations,” it said in a statement, adding that the 73% growth in revenue was driven by “strategic pricing, innovation, volume and market recovery”. 

“However, largely due to foreign exchange losses arising from the devaluation of the naira, and high interest expenses resulting from the increasing lending rates, the loss for the period went up by 79%,” it said.

Nigerian Breweries is in the process of raising up to N600 billion additional capital through a rights issue to restore sustainable growth and profitability, and enhance operational and financial stability, according to the statement.

“The funds raised will be used to eliminate our foreign exchange-denominated debts and reduce our local debts, thereby mitigating the company’s exposure to the continuing economic challenges,” the brewer added.