Due to Nigeria’s economic challenges, many citizens are finding it increasingly difficult to afford beer, according to Hans Essaadi, the CEO of Nigerian Breweries.
Speaking about the company’s financial performance, Essaadi highlighted the impact of soaring inflation on consumers, leading to a substantial loss of N106 billion in 2023.
Despite a 9% increase in revenue to N599.6 billion, Nigerian Breweries faced significant setbacks, attributing the losses to factors such as cash scarcity, fuel subsidy removal, naira devaluation, and double-digit inflation.
The CEO expressed concern that the challenging economic conditions have rendered many Nigerian consumers unable to afford the company’s popular Goldberg brand after a hard day’s work.
“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,” he said.
Looking ahead to 2024, Essaadi acknowledged the persistent macroeconomic challenges, including rising inflation, heightened operating costs, and strained consumer income.
Despite these hurdles, he expressed confidence that the lessons learned in 2023 would empower the company to create value for consumers and stakeholders.
He added that Nigerian Breweries is proactively preparing for the continued economic challenges, aiming to navigate uncertainties and transform adversities into market value creation opportunities.
