By Chinwendu Obienyi
Amid Naira devaluation, removal of subsidy, Nigerian Breweries (NB) Plc announced that its revenue grew by N277 billion from N274.02 billion recorded in the first six months (H1) of 2023.
This represents a 1.2 per cent increase. According to the unaudited and provisional results for the period which was filed with the Nigerian Exchange Limited (NGX), despite facing inflationary pressure on its input costs, the company managed to improve its gross margin to 44.4 per cent in the second quarter (Q2 2023) which was 312 basis points year-on-year (y/y) higher than the 41.3 per cent reported in Q2 2023.
A statement signed by the Company Secretary/Legal Director, Uaboi Agbebaku, revealed that the half-year results were majorly impacted by the devaluation of the naira which led to revaluation of foreign exchange obligations and higher input costs. Other factors were the effect of petroleum subsidy removal on consumers, a one-off redundancy exercise cost and the impact of the cash crunch that hit the country in the first quarter of the year. As a result, the company recorded an escalated loss after tax of N47 billion in the year under review
Agbebaku explained that despite the impact of these challenges, the company recorded more than 100 per cent increase in its Q2 2023 operating profit versus the corresponding period in 2022, driven mainly by pricing, focus on premium products, as well as strong and effective management of cost by the company.
He added that despite the current impact of Federal Government policy reforms, the company was optimistic that the reforms would be beneficial in the long term for the company and the country as a whole. The company thereafter reiterated its commitment to creating long term sustainable value for the company’ shareholders.