The Nigerian Breweries (NB) Plc says it has achieved 57 per cent of its 60 per cent 2020 target for local sourcing of raw material for production.
Mrs. Sade Morgan, Corporate Affairs Director, made the disclosure during the company’s Pre-Annual General Meeting Briefing on Tuesday in Lagos.
Morgan said that local sourcing was an integral part of the company’s long term sustainability agenda which was at the heart of its operations.
“We are also exploring the use of maize and rice as brewing adjuncts (sources of starch) in addition to what we have previously achieved with sorghum and cassava.
“This agenda enriches value creation among local business owners on the local sourcing value chain,” she said.
Morgan also restated the company’s commitment to enhance renewable energy, saying that NB in 2018 commenced the reuse of biogas generated from its effluent treatment plants for thermal heat generation in its boilers.
She said the company remains committed to positively impacting the society through its corporate social responsibility and sustainability activities.
Mr. Jordi Borrut Bel, Managing Director, NB, disclosed that for the full year 2018 report, the company recorded a turnover of N324 billion compared to N345 billion in 2017.
He said that operating profits declined from N57 billion to N37 billion, due to higher Excise Duties and other operating costs.
“In spite of the challenging operating environment, we were able to end the year with a profit after tax of N19 billion, although lower than the N33 billion recorded in 2017,” he said.
Bel said the new excise duty rate of N30 per litre introduced by the Federal Government in June 2018, translated to 43 per cent increase from the average rate of N21 per litre.
“It was difficult to pass on this extra cost to consumers in view of weak purchasing power. It was therefore an additional cost burden that companies in the sector had to bear,” he said.
Bel noted that in spite of the challenges in the economy, there were opportunities to be leveraged upon for growth.
He said that the country’s challenging environment was gradually improving, as inflation rate was on a decline, foreign exchange market stable and growth in the Gross Domestic Product.
Bel said the company would drive growth and profitability by leveraging innovation, expand leadership in premium products, build scale in mainstream brands and building high performing team.(NAN)