Nigerian Breweries Surpasses ₦1 Trillion in Revenue Amid Rising Costs and Economic Pressures

Nigerian Breweries Plc has made history by recording ₦1.1 trillion in revenue for the 2024 financial year, marking the highest-ever earnings in the company’s nearly eight-decade existence.

The milestone was announced at the company’s 2025 Media Briefing, held Thursday at the Sheraton Hotel in Lagos. Managing Director Hans Essaadi described the financial performance as a testament to resilience amid Nigeria’s volatile economic landscape.

According to Essaadi, the company’s 2024 revenue represents an 81% jump from the ₦599.5 billion posted in 2023. However, the celebratory figure came with significant cost implications. Operating expenses – including marketing, distribution, and administrative costs – rose by 45% to ₦184 billion, up from ₦127 billion the previous year.

The cost of goods sold also climbed by 98%, a surge attributed to persistent inflation and the impact of naira devaluation. While operating profit increased by 59%, these gains were undercut by rising net finance costs, which ballooned to ₦253 billion due to high interest expenses and forex losses. This ultimately resulted in a ₦145 billion net loss – 36% higher than the previous year.

“In spite of these hurdles, Nigerian Breweries demonstrated resilience through strategic adaptations,” Essaadi said. “We recapitalised via a rights issue, increased local sourcing, drove innovation, and acquired majority stakes in Distell Wines and Spirits Nigeria Ltd.”

Company Secretary Uaboi Agbebaku acknowledged operational disruptions, including the suspension of activities at two breweries, citing the toll of inflation, currency challenges, and dwindling consumer purchasing power. Despite this, he assured stakeholders that demand was met across markets.

Marketing Director Emmanuel Oriakhi echoed this sentiment, noting that the company remained committed to innovation, particularly through pricing strategies and packaging adjustments tailored to today’s economic realities.

“Maltina remains our flagship brand, but Heineken continues to thrive as one of the most dynamic players in the beer category,” Oriakhi added.

Corporate Affairs Director Sade Morgan described 2024 as a turbulent year, shaped by lingering effects from the previous year’s economic downturn, foreign exchange scarcity, and declining consumer wealth. Still, she said, the company continued to focus on growth and customer satisfaction.

“We remain committed to our purpose of inspiring a better world through true togetherness,” she said.

Digital and Tech Director Phil Aneke highlighted the company’s ongoing digital transformation, referencing its proprietary e-commerce platform and distributor management system. He credited Nigerian Breweries’ connection to its parent company, Heineken, for access to global tools and innovations that support the company’s long-term vision.

Established in 1946, Nigerian Breweries Plc is Nigeria’s first and largest brewing company. Its extensive portfolio includes iconic brands such as Star Lager, Gulder, Amstel Malta, Fayrouz, and Heineken.