Nigerian Breweries, the country’s largest beer manufacturer, reported a pre-tax loss of N145.3 billion for the previous year, the most since the company’s founding in 1946.

The beer manufacturer announced the loss following a year in which the value of the naira dropped by more than half due to foreign exchange losses.

The brewer’s net loss on foreign exchange transactions increased to N153.3 billion from N26.3 billion in the previous year, putting the company’s bottom line in the red. Fifty percent of the brewer’s input expenses are imported and priced in foreign currencies.

Revenue increased by 8.9% to almost N600 billion, according to its audited results report, which the Premium Times was able to view on Friday.

The local branch of Heineken Brouwerijen B.V. of the Netherlands stated in a separate paper on Friday that “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.”

“The devaluation of the naira, removal of the premium motor spirit (fuel) subsidy, high double-digit inflation rates (with food inflation at over 30%), and scarcity of foreign exchange further exacerbated the already difficult environment for the populace and businesses.”

The net finance cost increased from N34.4 billion to N189.2 billion in the previous year. Compared to the N13.2 billion profit after taxes recorded in the same time of 2022, the loss after taxes came to N106.3 billion.

As part of strategic steps to diversify revenue streams and boost earnings, Nigerian Breweries is on track to fully acquire the import operations of Heineken Beverages (Holdings) Limited and purchase an 80% controlling position in Distell Wines & Spirits Nigeria Limited.

At an extraordinary general meeting in December, Nigerian Breweries disclosed that the two agreements were valued at N7.01 billion.

On Monday, the firm declared that, in light of “continuously rising input costs and the need to mitigate the impact,” it would be reviewing its product pricing upward, starting on February 19.