Nigerian Breweries reports N67.8bn loss before tax in H1

Nigerian Breweries Plc reported group Loss Before Tax (LBT) of N67.844billion for the half-year (H1) period ended June 30, 2023 a decline by 364percent from profit before tax (PBT) of N25.697billion recorded in same period of 2022.

The foremost brewer’s half year financials at the Nigerian Exchange Limited (NGX) show that it grew group revenue by 1.2percent to N277.419billion as against N274.085billion in H1 of 2022.

The group also reported Loss After Tax (LAT) of N47.599billion, a decline by 354 percent from Profit After Tax (PAT) of N18.743billion in H1’ 2022.

“In the first half of the year (H1), net revenue grew by a low single-digit driven by pricing to partially mitigate inflation and by premiumisation. Premium beer volume was broadly stable while flavoured beer grew in the low thirties, led by Desperados, which more than doubled in volume versus the same period in 2022.

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“The second quarter of 2023 was significantly impacted by various factors including the effect of fuel subsidy removal on consumers, naira devaluation and its effect on input cost, and mostly the revaluation of foreign exchange obligations.

“Together with the cash crunch which materially impacted the first quarter, the Company’s net loss was escalated in H1. Despite these challenges, we see a positive trend in the results from operating activities (operating profit) which improved by more than 100percent in the 2nd quarter versus the same quarter in 2022, driven by pricing, premiumisation, and strong cost management.

Although the recent policy reforms are having a short-term impact on businesses and consumers, we believe they are beneficial to the long-term growth prospects of the country and the Company. The Board remains committed to creating long-term sustainable value for our Shareholders,” Nigerian Breweries noted in a recent statement signed by Uaboi Agbebaku, company secretary/legal director.