Nigerian Breweries Plc defies economic headwinds with stellar performance
By Felicia Nwosu
In a remarkable display of resilience, Nigerian Breweries Plc, the country’s leading total beverage alcohol company, has announced a spectacular 73% surge in revenue for the half-year period ended June 30, 2024.
This impressive feat is a testament to the company’s strategic prowess and adaptability in the face of daunting economic challenges.
The resilient company said despite navigating a complex landscape marked by soaring inflation, exchange rate volatility, and heightened operating costs, that it has been able to demonstrate unwavering resolve and determination.
The report showed that the company’s operating profit has soared by 34%, underscoring its ability to thrive in adversity.
According to NB, the inspiring and remarkable revenue growth can be attributed to a combination of strategic pricing initiatives, innovative product offerings, and a marked recovery in market demand.
However, the company has also grappled with a 46% increase in cost of sales, distribution, and administrative expenses, primarily driven by inflationary pressures and foreign exchange devaluation.
In a bold move to further bolster its financial stability and operational efficiency, Nigerian Breweries Plc has also announced plans to embark on a Rights Issue aimed at raising up to N600 billion in additional capital. It revealed that this strategic initiative will enable the company to eliminate foreign exchange-denominated debts, reduce local debts, and mitigate its exposure to economic headwinds.
Breaking the cheering record breaking report, Hans Essaadi, Managing Director/CEO of the brewing hub, noted that, “Our half-year performance is a resounding testament to the company’s resilience and unwavering commitment to delivering value to our shareholders. Despite the challenging operating environment, we remain focused on our long-term strategy to drive growth, innovation, and sustainability.”
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