Foreign exchange losses stemming from the devaluation of the naira, skyrocketing interest rates, reduced sales volume emanating from decreased disposable income, and increased input costs due to inflation have been cited by the Nigerian Breweries as reason for its Q3 loss.
The leading brewer reported a quarterly loss in its Q3 unaudited condensed interim financial statements for the quarter ending on September 30, 2023.
NB reported a loss before tax of ₦10.319 billion, marking a significant increase of 56.24% compared to the loss of ₦6.604 billion reported in the corresponding period in September 2022.
According to the report, sales volumes tanked, while flavored beer volume increased led by Desperados. The major brewer, however, attributed it to the pressure on disposable income and socio-political challenges across the country.
The significant loss has pushed the nine-month loss before tax to N78.163 billion, which is streak contrast to the N19.093 billion pre-tax profit recorded during the same period last year.
It would also be recalled that in 2022, the Nigerian Breweries’ share price experienced a notable decline, losing approximately 18% of its value. Furthermore, just yesterday, it dropped by 2.6%, closing at N38 per share, contributing to a year-to-date (YtD) loss of 7.2%.