Recently, Nigerian Breweries Plc released its unaudited and provisional results for the first half of the year ending June 30, 2024. The group reported a Loss After Tax (LAT) of N85.199 billion, a 79 percent increase from N47.599 billion in the same period in 2023.
Despite this, the group revenue saw a growth of 72.9 percent to N479.767 billion from N277.419 billion in the first half of 2023. However, the net finance expense spiked by 60.5 percent to N154.480 billion from N96.223 billion.
The company mentioned that it is facing challenges due to factors such as inflation, exchange rate volatility, security issues, elevated costs, and increased cost of living. Loss Before Tax (LBT) for the first half of 2024 was higher at N116.341 billion compared to N67.844 billion in the same period in 2023.
The company remains optimistic about its recovery, citing a 73 percent revenue growth driven by strategic pricing, innovation, volume growth, and market recovery. The Managing Director/CEO, Hans Essaadi, stated that the company is on the path to recovery despite the challenging external environment.
In a move to enhance financial stability, Nigerian Breweries is planning a Rights Issue to raise up to N600 billion in additional capital. This fund will help reduce debts, mitigate economic challenges, and strengthen operational and financial stability.
The company’s focus remains on delivering value to shareholders while contributing to economic development. The Board reassured shareholders of its long-term strategy and commitment to delivering value through people development, strategic innovation, operational efficiency, and community impact.
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