Nigerian Breweries Plc has stated that it is set to record significant growth in 2023 based on some of its expansion drives after issues of forex scarcity and insecurity in the country affected its sales and revenue in 2022.

Noteworthy, cost of sales spiked by 21.8 per cent or N60.4 billion in 2022, driving margin low and hurting gross profit.

However, it recorded 100% payout ratio with a total dividend paid at N0.4 pre share (N3.29bn). Also, , it proposed final dividend at N1.03 pet share (N10.58bn). Meanwhile, the approval of the dividend would be done at the Annual General Meeting which holds on April 26, 2023.

The Managing Director and Chief Executive Officer, Nigerian Breweries Plc, Mr. Hans Essaadi, while speaking to Journalists at the Pre-Annual General Meeting held in Lagos said he optimistic bounce back despite the harsh business terrain, adding that the company’s long term view and commitment to Nigeria remains the same.

“For over 77 years, we have built a strong legacy weathering so many storms. We have been faced and still being faced by storms especially with the Russia-Ukraine crisis that has made the price of diesel skyrocket. We are optimistic that we would sail through like we have always done over the past 77 years,” he said.

He added that “The insecurity situation is also a major challenge as it is hindering both local and foreign investments in the country,” he said.

He said the long term fundamentals for Nigeria are positive, but

He lamented that the first half of 2023 has been extremely difficult for industries including the scarcity of foreign exchange still lingers. However, he explained that the company’s collaboration with relevent local and international research institutes had been expanded to further assess and improve the performance and adaptability of selected registered local sorghum varieties.

He stated that the collaboration will help in the development of new sorghum varieties with improved quality for the industry and increased yield for farmers.

In his outlook for 2023, the Nigerian Breweries boss said with the benefit of an enabling environment, the Nigerian beer market fundamentals remain positive with growth potentials, but bemoaned that Nigeria’s macro-economic indicators, security and infrastructure however continues to remain high-risk.

He further stated that lower disposable income and high input costs as a result of inflation and naira devaluation are putting margins under pressure, stressing that additional excuse burden will further cripple business performance in 2023 while also expressing concerns on the prolonged forex scarcity.

Also speaking, the Corporate Affairs Director, Nigerian Breweries Plc, Mrs. Sade Morgan, said sustainability is at the heart of Nigerian Breweries’ business, stressing that the company has continued to make steady progress on its Brew a Better World agenda focusing on raising the bar on climate action, accelerating its social sustainability agenda through community impact and advocating the moderate consumption of alcohol.