Hans Essaadi, the CEO of Nigerians Breweries has stated that the economic hardship in Nigeria has advanced so much that citizens can no longer afford to buy beer.
Essaadi made this known on Monday at the company’s investor call following the release of its 2023 results.
“According to Bloomberg, he said:
“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.”
READ ALSO: Sanwo-Olu Orders Closure of Lagos Island Market
Nigerian Breweries suffered a N153bn foreign exchange loss due to the devaluation of the naira for the year ended December 2023.
For the period under review, the company grew its revenue by 8.9 per cent to N599.64bn from N550.64bn. Net finance expense rose significantly by 449.7 per cent to N189.19bn, dragging the brewer to a loss of N106.31bn, from a gain of N13.19bn at the end of 2022.
In comments accompanying the financial results, the Nigerian Breweries Board of Directors said:
“The Nigeria business landscape experienced significant shifts in 2023 with substantial impact on businesses and livelihoods nationwide.
“The redesign of the naira notes which resulted in cash shortage that severely hampered social and economic activities nationwide set the tone for a turbulent year.
“High double-digit inflation rates (with food inflation at more than 30 per cent), removal of subsidy on the premium motor spirit (fuel), devaluation of the naira, and foreign exchange scarcity further exacerbated the already difficult environment for the populace and businesses.”
