Nigerian Breweries Plc, Nigeria’s leading brewer, has declared a 34 per cent increase in its operating profit for the half-year ended June 30, 2024.

Mr Hans Essaadi, the Managing Director, Nigerian Breweries Plc, said this in a statement on Wednesday in Lagos.

Essaadi said the company recorded a 73 per cent increase in revenue within the period.

He said that the company’s revenue during the period  surged to N479.8 billion from N277.4 billion in the comparative period of 2023.

Nigerian Breweries gross profit up 87% in Q1 2024 result

He noted that the company was able to achieve all that in spite of the challenging operating environment characterised by soaring inflation, exchange rate volatility, security challenges, elevated input costs, and rising cost of living.

Essaadi stated that in the six months ended June 30, 2024, Nigerian Breweries demonstrated resilience and was on the path to recovery as seen in the results delivered.

He attributed the company’s revenue growth performance to strategic pricing, innovation, volume growth, and market recovery.

“Cost of sales, distribution, and admin expenses increased by 46 per cent, largely due to inflationary pressure and foreign exchange devaluation impacting imported materials.

“We also continue to invest behind our brands and categories and support the recovery of the market,” he said.

Essaadi also disclosed that the company was in the process of initiating a rights issue to raise up to N600 billion additional capital.

This, he said, would restore the business to profitability and enhance operational and financial stability as part of its resilient and forward-thinking strategy.

“The funds raised will be used to eliminate our foreign exchange-denominated debts and reduce our local debts, thereby mitigating our exposure to the continuing economic challenges.

“Through our cost-saving and other efficiencies initiatives, we recorded a 34 per cent increase in operating profit, signalling the resilience and strength of our operations.

“We are conscious of the continued challenging operating environment with double-digit inflation and pressured consumer income spending.

“However, we continue to focus on our strategy to deliver value to our shareholders while contributing to the country’s economic development,” he said.