Shareholders of Nigerian Breweries Plc have commended the board and management of the company for their decisive actions in steering the brewer back to profitability despite the prevailing challenging economic environment.
The commendation came at the 79th Annual General Meeting (AGM) of the company where stakeholders reviewed the company’s performance and ongoing recovery efforts.
Addressing shareholders during the AGM, the newly appointed Board Chair of Nigerian Breweries, Juliet Anammah, expressed profound appreciation for their patience, trust, and unwavering support during the turbulent period.
She noted that while the company did not declare a dividend for the year ended 2024, the net profitability recorded in the last quarter of the year and early 2025 indicated that the decisive actions taken were yielding tangible results.
“With the success of the Rights Issue coupled with the return to profitability in the last quarter of 2024, we are convinced that Nigerian Breweries is on the right path to improving its financial position and ensuring sustainable value creation for shareholders and other stakeholders,” Anammah said. She further expressed optimism that the company’s resumption of dividend payments would not be far off. Nigerian Breweries recently reported a profit after tax (PAT) of N44.6 billion for the first quarter (Q1) of 2025, a sharp turnaround from the N52.1 billion loss recorded in the same period last year. Revenue rose 69 per cent year-on-year to N383.6 billion, compared to N227.1 billion in Q1 2024, driven by deeper market penetration, strategic pricing, sustained innovation, strong commercial execution, and improved customer engagement. Operating profit soared by 238 per cent to N85.3 billion, while net finance costs dropped significantly by 83 per cent to N15.3 billion.
The company credited its improved financial position to the successful N600 billion Rights Issue in 2024, which was 92 per cent subscribed. This allowed the brewer to significantly reduce its foreign currency liabilities and optimise its capital structure. “The significant improvement in the operating profit reflects both volume and value growth, as well as the benefits from the business recovery and process optimisation initiatives undertaken in 2024,” the company stated.
Despite the early success, Anammah acknowledged the continued challenges in the operating environment but maintained that Nigerian Breweries was firmly positioned for sustainable growth. She noted that anticipated improvements in consumer purchasing power, a more stable macroeconomic environment, and policy reforms in 2025 would further support the company’s recovery trajectory.
Shareholders at the AGM were quick to acknowledge the efforts of the Board and Management. Ahmed Batula praised the leadership for their resilience “and for strategically managing the Rights Issue to reduce both local and foreign debt burdens.” Another shareholder, Robert Ibekwe, urged the company to maintain operational efficiency to ensure a swift return to consistent dividend payouts, while Siyanbola Adetutu commended the company’s commitment to gender diversity across its Board and Management.
Reflecting on the turbulent 2024 financial year—during which Nigerian Breweries recorded N1.07 trillion in revenue but suffered a N144.33 billion loss after tax—Managing Director/CEO Hans Essaadi highlighted the company’s strategic adaptations, including increased local sourcing, enhanced supply chain efficiencies, and the acquisition of majority stakes in Distell Wines and Spirits Nigeria Limited, to cushion the impact of high inflation and currency devaluation.
Meanwhile, Corporate Affairs Director, Sade Morgan, reiterated the company’s commitment to sustainability, emphasizing its dedication to environmental, social, and responsible governance aligned with the United Nations Sustainable Development Goals.
She projected that the expected review of the national minimum wage and the expansion in local refining capacity to stabilize energy costs would bolster consumer spending in 2025, enabling Nigerian Breweries to consolidate its leadership in the commercial beverage sector despite persistent competition.