Hans Essaadi, the CEO of Nigerian Breweries Plc, delivered a sobering revelation, stating that the economic downturn in Nigeria has reached a critical point where many citizens can no longer afford to indulge in a refreshing beer.
During the company’s investor call following the release of its 2023 results, Essaadi lamented the unprecedented challenges faced by Nigerian consumers, highlighting a significant decline in the mainstream lager market.
He emphasized that the average Nigerian worker can no longer unwind with a Goldberg after a hard day’s work due to financial constraints.
The company’s financial report reflected the harsh realities of the economic climate, with a staggering N153 billion foreign exchange loss attributed to the devaluation of the naira.
Despite achieving an 8.9% revenue growth to N599.64 billion, NB faced a substantial net loss of N106.31 billion, a stark contrast to the gain recorded in 2022.
In response to the tumultuous economic landscape, the NB Board of Directors acknowledged the widespread impact of cash shortages and inflation rates exceeding 30%.
They outlined the compounding challenges of fuel subsidy removal, currency devaluation, and foreign exchange scarcity, which have further burdened both citizens and businesses alike.
Despite the adversities, the board affirmed the company’s resilience and forward-thinking approach, drawing on over 77 years of experience in Nigeria to navigate the current challenges.
They underscored their commitment to driving long-term value creation for shareholders and stakeholders by leveraging a diverse portfolio, robust supply chain, and dedicated workforce.
Against the backdrop of the Central Bank of Nigeria’s forex market harmonization in June 2023, which triggered the naira devaluation, Essaadi’s remarks shed light on the far-reaching consequences felt across industries, with forex losses impacting companies like Nigerian Breweries while the banking sector reaped FX revaluation gains.
