By Dickson Pat
Nigerian Breweries Plc reported a post-tax loss of N144.8 billion for FY 2024, as detailed in its full-year audited financial report released on the NGX on February 14, 2025.
This figure represents a 36.3% increase in post-tax loss compared to the previous year when the company reported a loss of N106.3 billion.
However, the company achieved remarkable growth in its full-year revenue, soaring by 80.8% year-over-year to reach N1.08 trillion, up from N599.6 billion reported in the prior year.
In response to the challenges that affected net profit and to fortify the company’s financial position, Nigerian Breweries, with the backing of its shareholders, initiated a business recovery plan in 2024, which included a Rights Issue.
In a disclosure, the company expressed optimism, stating, “The Board is pleased to report positive developments as a result of the actions taken. In the last quarter of the year, the company demonstrated a strong recovery and positive momentum in terms of revenue and operating profit”.
Key highlights
Revenue: N1 trillion, +80.8% YoY
Cost of sales: N764.5 billion, +97.5% YoY
Gross profit: N319.9 billion, +50.5% YoY
Administrative expenses: N46.7 billion, +48.0% YoY
Other income: N4 billion, +36.2% YoY
Operating income: N69.8 billion, +59% YoY
Finance Income: N4.2 billion, +726.5% YoY
Loss on FX transactions: N157.5 billion, +2.8% YoY
Pre-tax loss: N182.9 billion, +26.0% YoY
Post-tax loss: N144.8 billion, +36.3% YoY
Total Assets: N1.1 trillion, +43% YoY
A cursory look at the financial report from Nigerian Breweries shows that high costs like increased sales expenses, rising administrative costs, and foreign exchange loses have overshadowed the strong revenue growth, affecting the company’s profitability.
For FY 2024, the company’s full-year revenue surged by an impressive 80.8%, increasing from N599.6 billion in the prior year to N1.08 trillion.
Notably, domestic sales in Nigeria constituted 99.9% of this revenue, while export sales accounted for a mere 0.1%.
However, the cost of sales saw a substantial increase of 97.5%, rising to N764.5 billion from N387 billion reported in the previous year.
Notwithstanding this increase, the group’s gross profit grew by 50.5%, reaching N319.9 billion compared to N212.6 billion in the prior year. In contrast, administrative expenses experienced a significant rise of 63.24%.
On a brighter note, other income increased by 36.2%, reaching N4 billion, up from N2.9 billion the previous year.
This figure was bolstered by N2.3 billion from scrap sales and N1.2 billion gained from the disposal of property, plant, and equipment.
Additionally, operating income surged by 59%, climbing to N69.8 billion from N43.9 billion. The group also witnessed a staggering 726.5% increase in finance income, which reached N4.2 billion.
However, foreign exchange losses lingered, with Nigerian Breweries reporting a loss of N157.5 billion, marking a slight increase of 2.8% from the previous year’s loss of N153.3 billion.
The group’s pre-tax loss rose by 26% year-over-year, climbing from N145.2 billion to N182.9 billion for FY 2024, while the post-tax loss amounted to N144.8 billion, marking a 36.3% increase from N106.3 billion in the prior year.
The group’s total assets increased significantly, rising from N795.8 billion in 2023 to N1.1 trillion in FY 2024.
Non-current assets reached N713.5 billion, up from N568.3 billion in the previous year, largely driven by property, plant, and equipment, which accounted for N535.2 billion.
In contrast, total current assets surged from N227.5 billion to N424.7 billion, with inventories and cash and cash equivalents contributing the most at N181.2 billion and N150.5 billion, respectively.
