Many Nigerians can no longer afford beer – NB CEO
The economic situation in Nigeria has deteriorated to the extent citizens can no longer afford to buy beer,” stated Hans Essaadi, Chief Executive Officer of Nigerian Breweries Plc.
Essaadi said this on Monday at the company’s investor call following the release of its 2023 results.
He expressed concern over the significant decline in the mainstream lager market, attributing it to Nigerian consumers’ financial constraints
“It has been unprecedented year for our business in Nigeria. We saw a significant decline in the mainstream lager market as a result of Nigerian consumers no longer able to afford a Goldberg after a hard day’s work,” Bloomberg quoted Essaadi as saying.
In comments accompanying the financial results, Essaadi said, “The Nigeria business landscape experienced significant shifts in 2023 with substantial impact on businesses and livelihoods nationwide. The redesign of the naira notes which resulted in cash shortage that severely hampered social and economic activities nationwide set the tone for a turbulent year.
“High double-digit inflation rates (with food inflation at more than 30 per cent), 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.”
He added that despite the headwinds, “The company was able to grow its revenue by nine per cent compared to the previous year aided by a positive price mix. However, the operating profit fell by 15 per cent due to higher input cost and one-off reorganisation costs despite strong and aggressive cost savings and other efficiency measures. Coupled with the impact of the devaluation of the naira which resulted in a foreign exchange loss of N153bn, the Company recorded a net loss of N106 billion during the year.”
The board emphasized the company’s commitment to leveraging its decades of experience in Nigeria to navigate the current macroeconomic challenges and drive long-term value creation for shareholders and stakeholders.
