Nigeria’s largest brewer has crossed a significant milestone, posting revenues of N1.467 trillion for 2024, a dramatic 35% leap from N1.08 trillion in 2023. But the real story isn’t just the numbers; it’s about survival, strategic recovery, and the bold gamble that paid off.
Just two years ago, we reported on Nigerian Breweries’ back-to-back losses, analyzing the economic headwinds that had pushed one of West Africa’s most iconic breweries to the brink. Fast forward to today, and the company’s audited full-year 2024 results, filed with the Nigerian Exchange Limited, tell a different story—one of resilience and calculated risk-taking.
The Recovery Playbook
The transformation hinged on a controversial N599.1 billion rights issue launched in 2024, part of a comprehensive business recovery plan that also included temporarily suspending operations at two of the company’s nine breweries. The move, which some analysts initially questioned, appears to have been vindicated.
“Group operating profit grew by over 190%, reflecting the revenue growth, rigorous cost discipline, productivity gains, and supply chain efficiencies on the back of the 2024 business recovery plan,” explained Uaboi Agbebaku, the company’s secretary and legal director.
The financial restructuring delivered immediate results. Gross profit surged 77% from N319.92 billion to N565.18 billion, while the company achieved an 83% reduction in net finance costs—a direct benefit of using rights issue proceeds to deleverage the balance sheet and eliminate foreign currency exposures that had hemorrhaged billions in previous years.
Beyond Beer: Strategic Expansion
In a significant strategic pivot, Nigerian Breweries completed the full acquisition and integration of Distell Wines and Spirits Nigeria Limited in 2024. While the integration carried a one-off cost, executives view the move as critical to expanding beyond the beer category and capturing Nigeria’s growing appetite for premium spirits and wine.
The company’s transformation was also powered by an often-overlooked factor: its extensive distributor network. Distributors across Nigeria—from Kaduna to Lagos, Aba to Ibadan—reported record demand for Nigerian Breweries’ products, driven by sustained quality and strategic brand positioning.
The Road Ahead
Despite the positive momentum, challenges remain. The company’s retained earnings position is still negative, a lingering effect of heavy losses suffered in 2022 and 2023. However, management expressed confidence that the recovery trajectory is proceeding as planned.
“The full acquisition and integration of Distell Wines and Spirits Nigeria Limited were completed in 2024 with a one-off integration cost. The integration will help to expand the companies’ beyond-beer portfolio and contribute to its long-term growth prospects.”
— Uaboi Agbebaku, Company Secretary/Legal Director
Cost pressures haven’t disappeared either. Marketing, distribution, and administration expenses grew 43% to N364.14 billion, while cost of sales rose from N764.52 billion to N902.24 billion. Yet the company’s ability to drive revenue growth faster than costs—through premiumization, innovation, and “the right pricing”—suggests a maturing strategy for navigating Nigeria’s volatile economic landscape.
Agbebaku assured stakeholders that with continued shareholder support and a focus on agility, innovation, and prudent financial management, Nigerian Breweries remains positioned for sustainable growth and long-term value creation.
For beverage industry professionals and investors tracking the Nigerian market’s evolution, this turnaround offers valuable lessons in crisis management, strategic restructuring, and the power of decisive action in uncertain times.
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