Three brewers record N274.5bn loss on high costs

Three brewers in Nigeria, Guinness Nigeria Plc, International Breweries and Nigerian Breweries, recorded N274.5 billion after-tax loss in the nine months of 2024 due to high operating costs, BusinessDay analysis shows.

These brewers recorded losses except Champion Breweries, which reported an after-tax profit of NN386.7 million in the nine months of 2024.

Further analysis reveals that in the nine months of the previous year three firms which are Champion Breweries recorded an after-tax loss of N77.69 million, International Breweries (N28.6 billion loss) and Nigerian Breweries (N57.2 billion loss) while only Guinness Nigeria Plc recorded an after-tax profit of N2.59 billion.

Firm analysis

Champion Breweries

Champion Breweries after-tax profit amounted to N386.7 million in the nine months of 2024 from an after-tax loss of N77.69 million.

The brewer’s revenue grew to N14.02 billion from N8.36 billion during the period reviewed while cost of sales increased to N8.28 billion from N4.92 billion.

Champion Breweries Plc is a leading brewery in Nigeria, established on July 31, 1974, with its headquarters in Uyo, Akwa Ibom State. The company is renowned for its production and marketing of Champion Lager Beer and Champ Malta. Additionally, it provides contract brewing and packaging services to Nigerian Breweries Plc, aligning itself with the Heineken group’s global standards.

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Guinness Nigeria Plc

Guinness Nigeria Plc’s after-tax loss stood at N12.2 billion in the nine months of 2024 from an after-tax profit of N2.59 billion in the same period of 2023.

The firm’s revenue grew to N125.9 billion from N59.5 billion during the period reviewed while cost of sales grew to N111.6 billion from N41.4 billion.

Guinness Nigeria brews beer in Nigeria and packages and markets a range of international spirits, beers and ready-to-drink beverages. Well-known brands in its product range include Guinness Foreign Extra Stout, Guinness Extra Smooth, Malta Guinness and Harp Lager Beer.

International Breweries

International Breweries after-tax loss deepened to N112.8 billion in the nine months of 2024 from an after-tax loss of N28.6 billion in the same period of 2023.

The firm’s revenue surged to N343.4 billion from N183.8 billion during the comparable periods. Cost of sales grew to N248.6 billion from N126.4 billion.

International Breweries Plc is a brewery in Nigeria which brews, packages and markets a range of beer and non-alcoholic malt beverages. The company is known for its beer sold under the Trophy brand name and non-alcoholic malt drink sold under the Betamalt brand name, namely Trophy Lager, Trophy Black and Betamalt malt drink.

Nigerian Breweries

Nigerian Breweries after-tax loss deepened to N149.5 billion in the nine months of 2024 from an after-tax loss of N57.2 billion in the same period of 2022.

The brewer’s revenue surged to N710.9 billion from N401.8 billion. Cost of sales grew to N500.9 billion from N249.2 billion.

Nigerian Breweries Plc, is the largest brewing company in Nigeria. It serves the Nigerian market and West Africa.