Lagos, Nigeria – February 17, 2025 – Nigerian Breweries Plc has reported a ₦149.88 billion loss after tax for the 2024 financial year, widening its loss by 40.99% from the ₦106.31 billion loss recorded in 2023. This comes despite an 80.85% surge in revenue to ₦1.08 trillion, up from ₦599.64 billion in 2023, reflecting higher product pricing and increased sales volume.
Thank you for reading this post, don't forget to subscribe!Rising Costs and Forex Losses Weigh on Performance
The company’s cost of sales jumped 97.53% to ₦764.52 billion, significantly outpacing revenue growth and resulting in a decline in gross margin from 35.5% in 2023 to 29.5% in 2024. Selling and distribution expenses also rose 42.63% to ₦203.24 billion, while administrative expenses grew 63.24% to ₦46.76 billion, further straining profitability.
Foreign exchange losses continued to impact the company’s bottom line, with net FX losses amounting to ₦157.60 billion, a slight increase from ₦153.33 billion in 2023. Additionally, finance costs soared 173.49% to ₦99.46 billion, contributing to net finance costs of ₦252.81 billion, up 33.63% from 2023.
Declining Profit Margins & Financial Position
Nigerian Breweries’ net profit margin remained negative at -13.8%, though it improved from -17.7% in 2023. The company’s return on equity stood at -96.7%, reflecting significant losses, while return on assets was -52.6%.
On a positive note, cash and cash equivalents surged 280.59% to ₦150.59 billion, improving liquidity. Total assets increased 43.02% to ₦1.14 trillion, while shareholders’ equity saw a massive jump of 633.11% to ₦463.94 billion, signaling a recapitalization effort. However, total liabilities remained high at ₦674.33 billion, with loans and borrowings at ₦209.05 billion.
Stock Market Performance & No Dividend Declaration
Nigerian Breweries’ share price stood at ₦36.00, with a 52-week high of ₦48 and a low of ₦28.80. The company’s market capitalization reached ₦369.9 billion, though the stock remains under pressure due to continued losses.
Given the challenging financial position, no dividend or bonus was declared for the 2024 fiscal year, with no AGM date announced.
Outlook
With Nigeria’s inflation rate at 34.8% as of December 2024 and the Monetary Policy Rate (MPR) at 27.50%, Nigerian Breweries continues to navigate a tough economic landscape. The company’s ability to manage costs, improve operational efficiency, and mitigate forex risks will be critical in its path to recovery.
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