AGS NEWS – Nigerian Breweries Plc has revealed a significant foreign exchange loss amounting to N153 billion, attributed to the devaluation of the naira.

This information was disclosed in the company’s earnings report, which accompanied its audited results for the year concluding in December 2023, submitted to the Nigerian Exchange Limited.

During the first half of the year, Nigerian Breweries Plc had recorded an exchange rate loss of N70.6 billion for the second quarter ending on June 30th, 2023.

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Despite a revenue growth of 8.9 percent to N599.64 billion from N550.64 billion during the period under review, the company’s net finance expense surged significantly by 449.7 percent to N189.19 billion.

Consequently, the brewer experienced a loss of N106.31 billion, contrasting with a gain of N13.19 billion reported at the close of 2022.

The Board of Directors of Nigerian Breweries highlighted the challenging economic landscape in Nigeria throughout 2023, characterized by a redesign of the naira notes, cash shortages, high inflation rates, removal of fuel subsidy, devaluation of the naira, and foreign exchange scarcity.

AGS NEWS reports that despite these challenges, the company managed to increase its revenue by 9 percent compared to the previous year, aided by a positive price mix.

However, operating profit decreased by 15 percent due to higher input costs and one-off reorganization expenses, alongside the impact of the naira devaluation resulting in the substantial foreign exchange loss.

In response to the prevailing economic conditions, the Board affirmed its commitment to leveraging the company’s extensive experience of over 77 years operating in Nigeria to navigate through the current challenges.

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Nigerian Breweries has announced plans for price adjustments in its product lineup, aiming to mitigate rising input costs.

The Central Bank of Nigeria’s actions to unify segments of the foreign currency market in June 2023 resulted in the naira’s devaluation, impacting various companies with forex losses, while the banking sector enjoyed FX revaluation gains.