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…Loss after tax soars to N144.33bn
By Merit Ibe and Chukwuma Umeorah
Economic pressures, including high inflation and naira devaluation took a toll on Nigerian Breweries’ operational costs, impacting raw materials, foreign exchange, and overall financial performance.
While the company posted a revenue of N1.07 trillion for last year as against N599.5 billion recorded in 2023, the company saw an increase in loss after tax to N144.33bn in 2024 from N105.76 billion the previous year.
The company made these disclosures during the 2025 pre-Annual General Meeting media briefing, yesterday in Lagos by the Managing Director/Chief Executive Officer.
Reviewing the company’s operations, Essaadi said the 2024 results were shaped by a complex and challenging business environment, significantly impacting operations and livelihoods nationwide. “Economic pressures, including high inflation rates and the devaluation of the naira, drove up operational costs and the price of raw materials.”
He noted that Nigeria’s inflation rate soared to a near 30-year high of 34.8% in December 2024, adding that despite these hurdles, the company demonstrated resilience through strategic adaptations, including a recapitalization of the company through a rights issue, increased local sourcing, innovation, and further diversification through the completion of the acquisition of majority stakes in Distell Wines and Spirits Nigeria Limited.
In its recovery plan for 2025, Company Secretary and Legal Director, Uaboi Agbebaku, explained that the company weathered the storm with its business plan, which was a set of actions for operational efficiency and sustainability. “We suspended operations in two breweries; optimized production footprints; N600 billion capital injection, among others.”
Sade Morgan, Corporate Affairs Director, pointed out that sustainability remains at the heart of the company’s business.
“We want to raise the bar on the three pillars of our long-term sustainability strategy, which are environmental, social, and responsible.”
She said together, these efforts align with the United Nations Sustainable Development Goals (SDGs), ensuring that “we protect the environment, promote equity and inclusivity, and positively impact society.”
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She said the company stayed on course to win despite the challenges. She pleaded with the government to allow the companies to recover from the harsh environment before imposing more taxes, urging its support in the backward integration drive. “It’s important we cannot do the backward integration alone, we need government’s support.”
For the outlook in 2025, Chair of the Board of Directors, Juliet Anammah, said there is an anticipation of a positive outlook for the economy. “The projected easing of inflation is expected to be driven by a higher base effect, stabilization of the FX rates, and the normalization of energy prices, post-subsidy removal.”
“The rebasing of Nigeria’s Consumer Price Index (CPI) will also create statistical effects that lower headline inflation figures. The expansion of local refining capacity, notably from the Dangote Refinery alongside the refurbished state-owned refineries in Warri and Port Harcourt, are expected to reduce the FX impact on energy prices.”
“Also, there will be room for more balance of payments underscored by reduced reliance on premium motor spirit (petrol) imports, which will alleviate pressure on foreign reserves.”
She was positive that Nigerian businesses are hopeful of building on the momentum of the last quarter of 2024. “Stability in economic policies and declining interest rates are expected to create a more favorable investment landscape. Lower borrowing costs will unlock access to financing, empowering companies to scale operations, fund capital projects, and accelerate growth.”
“The economy’s success or setback will largely depend on the government’s ability to navigate key challenges. These include effective management of revenue generation, debt sustainability, fiscal discipline, monetary policy coordination, macroeconomic stability, security, and social welfare.”
For the commercial beverages market, Anammah was optimistic that consumer spending will improve in 2025, propelled by improved macroeconomics, a more stable economic environment, and the introduction of a restructured minimum wage to boost workers’ earnings, leading to an increase in discretionary spending.
“As consumer purchasing power strengthens and market conditions improve, our position as a leading player in the consumer goods industry will enable us to take advantage of rising demand, notwithstanding the expected continuation of an aggressive competitive environment that has characterized the commercial beverages sector for some years now.”
She said the industry was understandably not exempt from the macroeconomic challenges highlighted above, with an impact on the cost of doing business and profitability. “While the market recorded modest growth, the players, however, recorded stronger revenue growth driven mainly by price increases with a view to mitigating the consistent increase in input costs. The same trend was seen with other consumer goods companies.”
“The market remained even more competitive during the year under review. The year also marked a significant development in the market, with one of the major players undergoing a transfer of ownership to a new entrant.”
