Nigerian Breweries Plc, the country’s biggest brewer by sales, reported a pre-tax loss of N50.8 billion for the quarter that ended on June 30, 2023.
It is a little 0.7% annual decrease from the N50.4 billion pre-tax loss reported in the second quarter of 2023.
Nigerian Breweries reported sales of N251.8 billion for the quarter, up 63% year over year from N154.1 billion in Q2 2023.
The group posted a revenue of N479.8 billion in the first half of 2024, marking the highest revenue ever posted by a Nigerian brewer in six months. The revenue of H1 2024 was a 73% year-on-year growth from the N277.4 billion revenue recorded in H1 2023.
Read Also: EnjoyCorp Limited finalises Champion Breweries 86.5% acquisition
Nigerian Breweries Plc posted a net loss of N33.1 billion during the quarter under review, marking a 10% appreciation from the N36.9 billion net loss posted in Q2 2023.
Despite its impressive revenue showing, the group’s operating profit declined by 51% year-on-year to N12.9 billion in Q2 2024 from N26.5 billion as of Q2 2023. According to the financial statements, there was a 50% YoY increase in selling and distribution expenses during the quarter to N52.1 billion, compared to N34.8 billion in Q2 2023
Nigerian Breweries also provisioned N2 billion as credit loss on its financial assets in Q2 2024, in contrast with N133 million as of Q2 2023.
The group recorded a net FX loss of N39.4 billion in the second quarter of the year. However, the loss declined by 44% YoY from N70.6 billion FX loss posted in Q2 2023.
Read Also: Nigerian Breweries Records Net Loss of N106 Billion, to Raise N600 Billion Capital via Rights Issue
Key Highlights Q2 2024 vs Q2 2023
Revenue: N251.8 billion, +63% YoY
Cost of sales: N174.0 billion, +103% YoY
Gross profit: N77.8 billion, +14% YoY
Selling and distribution expenses: N52.1 billion, +50% YoY
Operating profit: N12.9 billion, -51% YoY
Operating margin: 5%, -12 percent-points YoY
Profit/(loss) before tax: (N50.8 billion), -0.70% YoY
Profit/(loss) for the period: (N33.1 billion), +10% YoY
Total assets: N948.6 billion, +1% YTD
