…Following a tax credit of N38.03 billion in the period, the loss after tax came in at N144.88 billion (vs loss after tax of NGN106.31 billion in 2023FY).
TUE FEB 18 2025-theGBJournal| Nigerian Breweries Plc Revenue grew by 80.8% y/y in 2024FY (2023FY: +8.9% y/y), driven by significant price increases to counter inflationary pressures and currency weakness, along with volume growth.
In the brewers 2024FY audited results published last Friday, it reported net revenue growth of 65.2% q/q – reflective of the year-end celebrations and heightened consumer spending.
Gross margin printed 29.4% in 2024FY, representing a 596bps y/y decline from the 35.5% recorded in 2023FY, primarily due to elevated cost pressures.
Notably, we highlight a sharp increase in the cost of sales (+97.5% y/y) relative to revenue (+80.8% y/y), driven by a 118.0% y/y surge in raw materials and consumables expenses.
Consequently, EBIT and EBITDA margins contracted to 6.4% (-89bps y/y) and 11.5% (-379bps y/y), respectively, with further pressure stemming from higher operating expenses (+46.1% y/y), amid a substantial increase in net release of expected credit loss on financial assets (+762.6% y/y to N4.05 billion).
Net finance charges rose by 33.6% y/y to N252.81 billion in 2024FY, driven by a 173.5% increase in finance cost.
The rise in finance costs is largely attributed to higher interest expenses on loans and borrowings, which grew by 179.5% y/y.
Notably, the company reported a foreign exchange (FX) gain of N2.89 billion in Q4-24 (vs FX loss of N66.51 billion in Q4-23) supported by the naira appreciation in Q4.
Overall, NB recorded a pre-tax loss of N182.92 billion in 2024FY (vs pre-tax loss of N145.22 billion in 2023FY).
Following a tax credit of N38.03 billion in the period, the loss after tax came in at N144.88 billion (vs loss after tax of NGN106.31 billion in 2023FY).
The brewer reported a loss per share of N12.07 (vs loss per share of N12.80 in 2023FY).
The decline in earnings is primarily attributed to sustained cost pressures (+97.5% y/y) and foreign exchange loss (+2.8% y/y), which continued to weigh on the company’s performance.
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