Nigerian Breweries Plc. has reviewed the 2024 business operating environment in the country, describing it as a combination of economic highs and lows.
Mrs. Juliet Anammah, Chairperson of the Board of Directors of Nigerian Breweries Plc., made this known in the company’s 2024 annual report and account, released on Thursday in Lagos.
Anammah acknowledged that the Federal Government made meaningful progress in 2024 through policy clarity, consistency, and tax reforms, while also showing willingness to further engage and support the private sector.
However, she pointed out that despite the country’s GDP growth of 3.4% compared to 2.7% in 2023, there remained a significant gap between economic growth and the actual economic well-being of citizens.
The Nigerian economy, according to Anammah, faced a challenging macro-economic landscape in 2024. She outlined several headwinds, including rising inflation, further depreciation of the Naira, and fiscal deficits.
Anammah also highlighted that 2024 saw the continuation of policy reforms initiated by the government in 2023, aimed at addressing deep-rooted challenges hindering economic growth.
These policies included the removal of the fuel subsidy, improved domestic revenue mobilization, and foreign exchange unification.
Despite these efforts, she noted that socio-economic challenges, such as unemployment and infrastructure deficits, continued to negatively impact the broader economic landscape.
“Significant rises in economic costs exacerbated the financial positions of citizens, businesses, and government.
The year also witnessed sharp increases in credit costs for individuals and businesses due to monetary policy tightening by the Central Bank of Nigeria,” she stated.
Anammah further pointed out that Nigeria’s reliance on imports meant that the depreciation of the Naira drove up import costs, especially for businesses dependent on imported raw materials, tradable goods, and services.
She also noted that Naira depreciation resulted in substantial foreign exchange losses, negatively impacting the profitability of multinational companies.
To navigate these challenges, Anammah revealed that Nigerian Breweries took decisive actions to address the economic and business realities.
She emphasized the importance of the company’s committed employees, its diverse brand portfolio, and national footprint.
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“Our employees remain the key drivers of our successes over the years through their dedication, hard work, and unwavering commitment.
The growth and well-being of our people are therefore critical to fostering a safe, caring, and inclusive environment,” she said.
Anammah also mentioned that the company implemented various initiatives, including leader-led engagement sessions aimed at inspiring, developing, and retaining talent, as well as capacity-building programs.
These efforts led to improved climate survey results, reflecting higher satisfaction and morale among the workforce.
In spite of the challenging operating environment, Anammah reported that Nigerian Breweries delivered N1.1 trillion in group revenue, marking an 81% year-on-year growth. The last quarter of the year saw a revenue increase of 89%, while operating profit surged by 145%.
Additionally, the company’s rights issue recorded a 92% success rate in terms of funds raised.
“This turnaround signals a crucial step toward sustained financial health and underscores the impact of ongoing transformation actions,” Anammah concluded.