Nigerian Breweries Plc, the biggest brewer in the country, recorded an after-tax loss of N106.31 billion, driven by foreign exchange losses that strained its financial performance.
The brewer swung to a loss from a profit of N105.8 billion in 2022, according to its latest financial statement.
CardinalStone Research, in its earnings report, said Nigerian Breweries’ FX losses strained the firm’s full-year earnings.
“In its 2023 results, Nigerian Breweries Plc reported an N106.3 billion loss in its earnings, following a 482.1 percent year-on-year jump in net loss on foreign exchange transactions, which stemmed from its deposits from imports of N16.2 billion (from N6.9 billion in 2022) and foreign denominated bank loans.”
Nigerian Breweries’ net loss on FX transactions surged to N153.33 billion from N26.34 billion during the period.
Revenue increased to N599.64 billion from N550.64 billion while cost of sales rose to N387.03 billion from N337.31 billion.
“On the sales front, the company recorded a topline growth of 8.9 percent, reflecting an increase in the price of its products,” analysts at Cardinalstone Research said. “Similarly, the cost of sales increased by 14.7 percent year-on-year owing to an increase in the cost of raw materials (+15.9 percent) and transportation (+15.3 percent).”
“The Nigeria business landscape experienced significant shifts in 2023, substantially impacting businesses and livelihoods nationwide. The redesign of the naira notes which resulted in cash shortage that severely hampered social and economic activities nationwide set the tone for a turbulent year,” Uaboi Agbebaku, its company secretary, said in a statement.
