According to THE NEWS CHRONICLE’s analysis, Guinness Nigeria and International Breweries had the highest cost-of-sales ratio among peers in the first nine months of 2024, owing to a foreign exchange crisis and logistics costs.

A financial indicator known as the cost-of-sales ratio calculates the percentage of a business’s revenue spent on producing goods or services. It is computed by multiplying the result by 100 and dividing the cost of sales by the total revenue.

Subsequent investigation shows that Guinness Nigeria Plc’s input costs represented 88.6% of total income, followed by International Breweries (72.4%), Nigerian Breweries (70.5%), and Champion Breweries (50.1%).

The four brewers’ combined revenue increased from N653.5 billion to N1.19 trillion, and their input costs increased from N421.9 billion to N869.4 billion.

The combined cost of sales for the four brewers accounted for 72.8 percent of total revenue, an increase of 820 basis points from 64.6 percent. Some of the inputs used by manufacturers are imported, and due to the devaluation of the naira, these expenses have increased. Brewers who must move their products from the factory to the marketplace also confront significant logistical challenges.

Business Analysis

Guinness Nigeria Plc

During the first nine months of 2024, Guinness Nigeria’s input costs consumed 88.6% of its total revenue, compared to 69.6% during the same period the year before.

During the year under review, the company’s revenue increased from N59.5 billion to N125.9 billion, while its cost of sales increased from N41.4 billion to N111.6 billion.

The nine months of 2024 saw an after-tax loss of N12.2 billion, compared to an after-tax profit of N2.59 billion during the same period in 2023.

In addition to packaging and selling a variety of foreign spirits, beers, and ready-to-drink beverages, Guinness Nigeria makes beer in Nigeria. 

Its product line includes well-known brands such as Malta Guinness, Guinness Extra Smooth, Guinness Foreign Extra Stout, and Harp Lager Beer.

International Breweries

During the first nine months of 2024, International Breweries’ input costs consumed 72.4% of its total income, compared to 68.8% during the same time the year before.

The company’s sales increased from N183.8 billion during the same period to N343.4 billion. The cost of sales increased from N126.4 billion to N248.6 billion.

The after-tax loss increased to N112.8 billion in the nine months of 2024 from N28.6 billion in the same period in 2023.

Nigerian brewery International Breweries Plc produces, distributes, and sells a variety of beer and non-alcoholic malt beverages. The company’s non-alcoholic malt beverages, Trophy Lager, Trophy Black, and Betamalt malt drink, are marketed under the Trophy brand, and its beer is marketed under the Trophy brand.

Nigerian Breweries

In the first nine months of 2024, Nigerian Breweries’ input costs consumed 70.5% of their total revenue, compared to 62.02 percent during the same time the year before.

The brewer’s revenue increased from N401.8 billion to N710.9 billion, and the cost of sales increased from N249.2 billion to N500.9 billion.

The after-tax loss increased to N149.5 billion in the nine months of 2024 from N57.2 billion in the same period in 2022.

The biggest brewing company in Nigeria is called Nigerian Breweries Plc. It caters to West Africa and the Nigerian market.

Champion Breweries

In the first nine months of 2024, Champion Breweries’ input costs consumed 59.06 percent of its total income, compared to 58.9 percent during the same time the year before.

During the period under review, the brewer’s revenue went from N8.36 billion to N14.02 billion, while the cost of sales increased from N4.92 billion to N8.28 billion.

The nine months of 2024 saw an after-tax profit of N386.7 million, compared to an after-tax loss of N77.69 million.

Founded on July 31, 1974, Champion Breweries Plc is a Nigerian brewery with its main office located in Uyo, Akwa Ibom State. The company is well known for producing and selling Champ Malta and Champion Lager Beer.

In keeping with the global standards of the Heineken group, it also offers Nigerian Breweries Plc contract brewing and packaging services.