The company attributed the loss to the impact of foreign exchange, as the Nigerian naira depreciated significantly during the year. With half of its input costs imported and denominated in foreign currencies, the brewer incurred a net loss of N153.3 billion on FX transactions, compared to N26.3 billion the previous year.
Despite this, revenue increased by 8.9 percent to approximately N600 billion, as stated in its audited earnings report released on Friday.
“The redesign of the naira notes, which led to a cash shortage severely impacting social and economic activities nationwide, set the stage for a challenging year,” stated the local branch of Netherlands’ Heineken Brouwerijen B.V. in a separate document released on Friday.
“High double-digit inflation rates (with food inflation at more than 30%), removal of subsidy on premium motor spirit (fuel), devaluation of the naira, and foreign exchange scarcity further exacerbated the already difficult environment for the populace and businesses.”
The net finance cost surged to N189.2 billion from N34.4 billion in the previous year. In contrast, the loss after tax amounted to N106.3 billion, marking a significant shift from the profit after tax of N13.2 billion reported in the same period of 2022.
Nigerian Breweries is progressing with plans to acquire a controlling stake of 80 percent in Distill Wines & Spirits Nigeria Limited, as well as fully acquire the import business of Heineken Beverages (Holdings) Limited. These strategic moves aim to diversify revenue streams and bolster earnings.
The two deals are valued at N7.01 billion, as announced by Nigerian Breweries during an extraordinary general meeting held in December.
On Monday, the company announced it would implement a price increase for its products starting from February 19, citing continued escalation in input costs and the necessity to mitigate the impact.