The third quarter financial result recently published by Nigerian Breweries Plc has been attracting reviews by analysts and stakeholders, with many of them believing that the strong fundamentals in the report point to a resurgence of the Nigerian brewing giant.
NB Plc recently released its third quarter 2024 results, in which it recorded a total revenue of N703 billion, a significant increase from the N403 billion recorded for the same period in 2023. The company also declared a 36 percent rise in gross profits to N207 billion, up from N152 billion for the same period last year.
Commenting on the result, Chibueze Ona, Managing Partner, Francona Consulting, an Abuja-based investment intermediation firm said the result shows that Nigerian Breweries is poised to reclaim its status as one of the most valuable brands on the Nigerian capital market.
Ona, who extolled the determination of the brewery’s management to return the company to profitability, lamented the tough situation in the Nigerian market but insisted that those who work hard stand to reap the future benefits.
“I think that Nigerian Breweries is doing exceedingly well given the circumstances. That is why I commend the management for its determination to ride the headwinds of the Nigerian market. Although there is still a short way to go towards posting a bottom line that will delight short-term investors, the present numbers indicate that the distance to be covered is no longer remote,” he stated.
He decried the economic situation in the country, which he said presents a major challenge for investors, but commended the Nigerian Breweries for its determination to stay the course.
“Heineken has genuinely demonstrated its faith in Nigeria and I think that is why it is determined to ride the turbulent waves currently shaking the market. No matter what any person might say, this is still the largest market in Africa and one of the biggest in the world and those who stick with this country for the long term will immensely reap the fruits of faithfulness in the fulness of time, and I speak in terms of volume businesses and brand awareness,” Ona stated.
Also speaking, the Managing Director of Crane Securities, Prince Mike Eze, also commended the fundamentals in the results, saying it points to a future return to growth by the brand.
Eze, who lamented the decline in the value of the naira, said the misfortunes of the Nigerian currency have adversely affected both quoted and private companies in the country. He, however, remained optimistic that stability will return to the market to ensure businesses who invest reap due benefits.
“It is quite unfortunate that the ill fortunes of the Naira have recalibrated the numbers for many businesses. Whether you are importing your inputs or you are sourcing them locally, the affliction has a way of affecting everybody, because the markets are connected. But I commend the Nigerian Breweries for its focus on retaining its leadership and presence. The growth we are seeing in both its revenue and gross profits are the results of its determined drive to return to profitability,” Eze concluded.
Lending his voice to the result, Akonte Ekine, CEO and Lead Strategist, of AbsolutePR, commended Nigerian Breweries for retaining its faith in the Nigerian Market despite compelling economic challenges.
Ekine, who also is the founder of Consumer Value Awards, praised the company for working hard to retain its leadership and presence even as the market remains tough.
“I think Nigerian Breweries has been exemplary in its demonstration of belief in the Nigerian market. Although it has slowed down with its innovative bullish marketing because of the difficulties the economy is facing, I know that it has kept faith with its customer base, and has continued with a lot of its commitments to customers. These are highly commendable,” he said.
