WorldStage Newsonline– Nigerian Breweries Plc (NB) has released its second quarter 2024 (Q2-24) unaudited financials with a lower pre-tax loss of N50.76 billion from N50.41 billion in Q2-23 while the loss after tax settled at N33.11 billion from N36.88 billion loss in Q2-23.
NB reported a 63.4% y/y increase in revenue for Q2-24 (H1-24: +72.0% y/y), driven by significant price increases (c. 35.0%) to counter inflationary pressures and currency weakness, along with innovation and volume growth.
NB reported strong expansion in its premium portfolio, with Desperados and Tiger leading the way, showing over 10.0% growth.
In the non-alcoholic segment, Hi-Malt, Fayrouz and Maltina also saw single-digit growth. Quarterly revenue increased by 10.8%, reflecting the impact of higher pricing.
Gross margin contracted by 135bps y/y to 30.9% in Q2-24 (Q2-23: 44.4%), due to elevated increase in cost of sales (+103.1% y/y) following the 118.0% y/y increase in raw materials and consumables. As a result, EBITDA (-145bps y/y) and EBIT (-121bps y/y) margins declined to 10.4% and 5.1%, respectively, amid a 51.9% y/y increase in OPEX.
Net finance cost declined by 17.3% y/y to NGN63.63 billion (Q2-23: NGN76.90 billion) driven by a 45.1% y/y decline in FX loss amid a 279.5% y/y increase in finance cost.
The results showed a lower loss per share of N3.21 from N4.44 in Q2-23. However, for H1-24, the loss per share increased to N8.21 from N5.70 in H1-23, impacted by ongoing cost pressures and foreign exchange losses.
