NB Suffers Worst Performance On FX Loss, Cost Of Production
Nigeria Breweries Plc in its 2023 result and accounts marked its worst performance in over 10 years, attributable to the unification of the naira and hike in costs of production influenced by double-digit inflation rate.
The multinational brewery marker reported slow revenue growth amid weak purchasing power as other financial parameters such as cost of sales, operating expenses, and foreign exchange losses impacted the Group’s overall performance in the year under review.
In 2023, Cost of sales (CoS) moved to N387.03billion, a growth of nearly 15 per cent from N337.331billion in 2022.
The interchange between revenue and cost of sales led to N212.61billion gross profit in 2023, representing an increase of 0.06 per cent from N212.48billion reported in 2022.
Cost of Sales
The group’s CoS/Revenue stood at 64.54per cent in 2023 from 61.3per cent in 2022, while gross profit margin stood at 35.5per cent in 2023 from 38.59 per cent in 2022.
Nigerian Breweries’s total operating expenses (OPEX) that comprise of selling & distribution expenses and administrative expenses closed the year under review at N171.13biillion, an increase of 4.4 per cent from N164billion reported in 2022.
Nigerian Breweries hits the highest revenue in 2023 financial year, driven by strong pricing in some of its products.
Nigerian Breweries reported N599.64billion revenue in 2023, representing an increase of nine per cent from N550.64billion in 2022. In the prior year, the group reported 26 per cent increase in revenue from N437.29billion in 2021.
In 2023, revenue in Nigeria stood at N599.31billiion from N550.43billion as export’s revenue moved from N210.53million in 2022 from N335.47million reported in 2023.
Source: THISDAY
