Financial Hangover: Nigerian Breweries CEO Reveals Impact of Economic Crisis on Beer Consumers
The Chief Executive Officer of Nigerian Breweries Plc, Hans Essaadi, highlighted the challenge citizens face in affording beer due to the current economic situation in Nigeria. Essaadi made this statement during an investor call following the release of the company’s 2023 results on Monday.
In a year marked by significant downturns in the mainstream lager market, Essaadi expressed concern over Nigerian consumers’ struggles to afford a Goldberg after laborious days. Notably, the company incurred a foreign exchange loss of N153 billion, attributed to the devaluation of the naira for the year ending December 2023, according to Bloomberg.
Read also:FG, Cement Manufacturers Agree on N7,000, N8,000 for 50kg Per Bag
To counter the continuous surge in input costs, Nigerian Breweries increased the prices of its products in August 2023. The board of directors acknowledged the challenging business landscape in 2023, citing shifts in the economy, the redesign of naira notes causing cash shortages, high double-digit inflation rates, removal of fuel subsidies, devaluation of the naira, and foreign exchange scarcity.
Despite headwinds, the company managed to grow its revenue by nine per cent compared to the previous year. However, operating profit fell by 15 per cent due to higher input costs and one-off reorganization costs. Coupled with the impact of the devaluation of the naira, the company recorded a net loss of N106 billion during the year.
Read also:Woman Gives Birth At Lagos Bus Stop
The board underscored its commitment to leveraging over 77 years of operation in Nigeria to navigate current macroeconomic challenges.
Despite the challenging environment, Nigerian Breweries remains resolute in adapting to present conditions while emphasizing the company’s readiness to face the current macroeconomic challenges.
Stay informed with Ejes Gist News – Your Source for Credible News in Nigeria Now.
