Nigerian Breweries, the largest brewery company in the nation, reported a loss of N10.7 billion in the first quarter of 2023 as a result of the rippling effects of the contentious naira devaluation policy of the Central Bank of Nigeria (CBN)
The company’s turnover pegs at N123.31 billion, which represents a decline of 10.49% from N137.77 billion reported in Q1 2022.
According to the firm, the operating environment during the period under review was very challenging for businesses.
“The impact of the cash crunch which led to a near collapse of payment channels as well as the security and safety uncertainties associated with the general elections, created disruptions in the economy.
“These were in addition to the continuing headwinds of inflationary pressure with its impact on purchasing power, input cost, and operating expenses.
“The total brewed product market suffered a double-digit (mid-twenties) volume decline versus the same period in 2022. We were able to largely mitigate the volume decline impact on our Revenue due to our appropriate pricing strategy.
“Our Operating Profit was further impacted by a one-off reorganization cost to refresh and restructure the business to cope with current challenges for a sustainable future
“The Board remains committed to creating long-term and sustainable value for our Shareholders.”
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