A combined total of N189.63 billion was raked in revenue by four breweries in Nigeria in the first quarter of 2021 according to data analyzed from their Q1 unaudited financial statements. This combined total accounts for a total increase in revenue of 27.94% from the combined total revenue of N148.22bn which the four brewing companies made same time last year.
Nigeria breweries grew revenue by 27% rising from N83.23bn in Q1 2020 to N105.68bn in Q1 2021. This rose its pretax profit to N11.51bn accounting for a 38.8% increase in revenue.
Guinness Nigeria Plc grew revenue by 53.88% rising from N27.69bn in Q1 2020 to N42.61bn in Q1 2021. This rose its pretax profit to N3.17bn from N7.39 million in Q1 2020.
International Breweries Plc grew revenue from N35.35bn in Q1 2020 to N38.96bn in Q1 2021. This reduced its pretax loss to N3.56bn from N7.69bn in Q1 2020.
Champion Breweries Plc grew revenue from N1.95bn in Q1 2020 to N2.38bn in Q1 2021. This rose its pretax profit to N309.19m from N197.49m in Q1 2020.
The Punch, citing the analysis of experts at Financial Derivatives Company Plc, reports that, ”…the brewery industry was adversely affected by the global economic downturn, lockdown and disruption induced by the pandemic.”
The experts further said “…the impact of tough fiscal regulation (excise duties, VAT at 7.5 per cent) and higher cost pressures continued to weigh on the sector’s performance, coupled with lingering weak macroeconomic fundamentals pressuring consumers’ disposal income and consumer spending.”
Quoting the analysts further, the Newspaper said, ‘“In addition, the forex illiquidity and weaker naira have increased the cost of production of breweries, which have a high import content.
“However, the breweries industry is expected to deliver great value in the medium to long term on the back of Nigeria’s growing population and favourable demographics, low consumption per capita, and increasing opportunities for exports under the African Continental Free Trade Area Agreement.
“Breweries will continue to leverage on product innovation to remain competitive in the face of constrained pricing actions,” the online version of the newspaper concluded.
Azuka Edokobi is a Writer and Entrepreneur