Nigerian Breweries has found itself deeper in the red, with foreign exchange (FX) losses ballooning to a staggering N160.48bn by the end of the third quarter.
Nigerian Breweries reports N149.50bn loss in Q3 as devaluation effect lingers
The company revealed these figures in its unaudited results filed with the Nigerian Exchange Limited on Wednesday.
It’s been a rough ride—back in September 2023, FX losses stood at N86.83bn. Fast forward to the same period in 2024, and that number has shot up by nearly 85%, hitting N160.48bn. Things didn’t look much better quarter-to-quarter either, with an additional N48.21bn lost to forex swings in just three months.
In June, the loss tally sat at N112.27bn, but the situation kept snowballing.
According to The PUNCH, the company recorded a N153bn FX loss in 2023, thanks to the naira’s devaluation. To ease the pressure, Nigerian Breweries recently announced a N599bn rights issue aimed at reducing its FX exposure.
Even with all this turbulence, revenue saw a massive 74.9% jump, reaching N703bn by the end of Q3 2024. But that wasn’t enough to keep the books balanced—loss after tax surged by a jaw-dropping 161.39%, landing at N149.50bn.
In a press release, Managing Director and CEO Hans Essaadi didn’t sugarcoat the challenges but emphasized the company’s grit in weathering the storm.
“The business has delivered growth in the face of the challenging operating environment. Revenue grew by 75 per cent, benefiting from strategic pricing, innovation and market recovery,” Essaadi remarked.
He explained that the company’s rising net loss was largely driven by FX losses linked to the naira’s devaluation and increased borrowing costs from higher interest rates. Still, he expressed hope that the cash raised from the rights issue would fortify the balance sheet and trim the company’s FX exposure.
Meanwhile, Company Secretary and Legal Director, Uaboi Agbebaku, stood firm on the board’s commitment to supporting Nigeria through people development, innovation, and community outreach.
He added, “The board remains confident in its long-term strategy to deliver value to shareholders.”
Agbebaku also gave a heartfelt shoutout to trade partners, customers, and stakeholders, thanking them for sticking by the company during these tough times…[READ MORE HERE]>>
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