Nigerian Breweries’ foreign exchange loss worsened to N160.48bn as of the end of the third quarter.
This was disclosed in its unaudited results filed with the Nigerian Exchange Limited on Wednesday.
The financial result showed that the brewer’s FX loss, which was N86.83bn as of September 2023 had risen by about 84.83 per cent to N160.48bn at the end of the same period in 2024.
Quarterly, the results indicated a N48.21bn increase in the FX losses of the company within three months.
In June, the firm’s FX losses stood at N112.27bn.
The PUNCH reports that Nigerian Breweries suffered a N153bn forex loss in 2023 due to the devaluation of the naira and it recently announced a N599bn rights issue to cut the FX losses.
Despite recording a 74.9 per cent growth in its revenue to N703bn at the end of the third quarter, NB stayed in the reds as loss after tax surged by 161.39 per cent to N149.50bn.
In a press statement accompanying the results, the Managing Director/Chief Executive Officer of Nigerian Breweries Plc, Hans Essaadi, revealed that despite the continued challenging operating landscape characterised by high inflation, currency devaluation and rising input costs, the company had demonstrated resilience, as seen in the results delivered for the period ended September 30, 2024.
“The business has delivered growth in the face of the challenging operating environment. Revenue grew by 75 per cent, benefiting from strategic pricing, innovation and market recovery,” Essaadi noted.
He stated that foreign exchange losses largely influenced the company’s increase in net loss due to the naira devaluation and high borrowing costs arising from higher interest rates, and expressed optimism that the funds raised through the rights issue will strengthen the company’s balance sheet and significantly reduce its FX exposure.
Speaking on behalf of the board, the Company Secretary/Legal Director of Nigerian Breweries Plc, Uaboi Agbebaku, reaffirmed the firm’s enduring commitment to winning with Nigeria through people development, strategic innovation, operational efficiency, and community impact.
He added that the board remained confident in its long-term strategy to deliver value to shareholders.
He expressed appreciation to the trade partners, customers and all stakeholders for their immense support during these challenging times.