Nigerian Breweries reports a Q1 2024 net loss of N52.1 billion

Nigerian Breweries Plc reported a N52.1 billion loss after taxes in its unaudited financial accounts for the first quarter (Q1) of 2024.

This is a 79% year-over-year decrease from the N10.7 billion net deficit declared in the first quarter of 2023.

The group’s massive N227.1 billion gross turnover for the quarter represented an 84% year-over-year increase in revenues over the N123.3 billion reported during the same quarter in the previous year.

The business did, however, report a pre-tax loss of N65.6 billion due to a net finance cost of N90.8 billion, a 73% decrease from the N17.4 billion pre-tax loss reported in Q1 2023.  

The group has experienced financial volatility since 2023, as shown by its stated net foreign exchange loss of N72.8 billion in the first quarter of 2024.

Key Differences Between Q1 2024 and Q1 2023

Revenue: N227.1 billion, +84% YoY  

• Cost of sales: N145.2 billion, +83% YoY  
• Gross profit: N81.9 billion, +87% YoY  
• Selling and distribution expenses: N10.9 billion, +32% YoY  
• Operating profit: N23.3 billion, +1241% YoY  
• Net finance costs: N90.8 billion, +370% YoY  
• Loss before tax: N65.6 billion, -73% YoY  
• Loss after tax: N52.1 billion, -79% YoY 
• Earnings per share: (N6.27), -79% YoY  
• Cash and cash equivalents: N52.6 billion, +33% YTD 
• Total equity: N11.4 billion, -82% YTD 
• Total assets: N856.8 billion, +8% YTD

The business spent N117.6 billion on consumables and raw materials throughout the quarter, a massive 120% rise year over year from the N53.5 billion spent on inputs in Q1 2023.

The high-interest rate operating environment in Nigeria is also reflected in the group’s 283% year-over-year surge in interest expenditure during the quarter. As of Q1 2024, its interest expense was N18 billion, down from N4.7 billion in Q1 2023.