Reduced purchasing power of consumers negatively affects Nigerian Breweries profit

…As company records N106bn loss

Reduced purchasing power of consumers in the country have negatively affected the profits of Nigerian Breweries.

The CEO of Nigerian Breweries, Hans Essaadi lamented that Nigerian consumers of its Goldberg brand can no longer afford its product- Goldberg lamenting the effect of skyrocketing inflation on the company’s financial performance resulting in a loss of N106 billion in 2023

He said this while speaking to investors on the company’s financial results where he stated that despite the ugly macroeconomic conditions the company recorded a 9 percent increase in revenue to N599.6 billion.

According to him, the cash scarcity occasioned by the naira redesign fiasco coupled with the fuel subsidy removal, devaluation of the naira and double-digit inflation resulted in the company recording a net loss of N106 billion in 2023 from the N13.18 billion profit for 2022.

He stated, “It has been an 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.”

Going into the new year, the company stated that it is prepared to face the adverse macroeconomic conditions and with the knowledge from 2023, it will be able to create value for its consumers and other stakeholders.

The CEO said, “Going into the new year, we are conscious of the continued severe macroeconomic challenges – rising inflation, heightening operating costs and pressured consumer income spend. However, we believe the challenges of 2023 have laid the groundwork for opportunities that would lead to value creation for all our stakeholders.”