Prime Business AfricaIn 12 months, Nigerians spent over N1.85 trillion on alcoholic and non-alcoholic drinks, according to an analysis of 2024 financials obtained from four brewing companies.
The revenue generated by Guinness Nigeria, International Breweries, Nigerian Breweries and Champion Breweries is N838.34 billion or 82.55 per cent higher than the N1.01 trillion turnover reported the year before.
Join our WhatsApp ChannelFindings by Prime Business Africa showed that the four brewers spent N1.33 trillion to produce their products last year, compared to the N491.49 billion cost of sales registered in their financials in 2023.
With a 171.59 per cent increase in production expenses, the brewing industry used 72 per cent of its revenue in 2024 to produce its drinks, a staggering increase from 48.39 per cent during the previous year.
At the end of the reviewed period, Guinness Nigeria, International Breweries, and Nigerian Breweries reported losses, while Champion Breweries was the only producer to record profit after tax (PAT) last year.
How the companies performed in 2024
Nigerian Breweries
Nigerian Breweries’ market share by revenue declined marginally to 58.49 percent in 2024 from 59.04 percent the previous year, despite an increase of 80.84 percent in turnover during the period in review.
The company reported that its revenue grew from N599.64 billion to N1.08 trillion – the first trillion-naira turnover in the history of the Nigerian Breweries.
The increase in revenue trailed the 97.53 per cent jump in the cost of sales recorded by Nigerian Breweries last year, when the company registered N764.52 billion as the cost of production, compared to N387.03 billion in 2023.
At the end of the period, Nigerian Breweries saw a 36.28 percent rise in its loss after tax, which moved from N106.30 billion to N144.88 billion.
International Breweries
International Breweries’ market share was up from 25.66 per cent to 26.37 percent – making the company the only brewer to increase its industry stake last year.
The producer accounted for N488.95 billion out of the total industry revenue in 2024, surpassing the N260.59 billion turnover generated in 2023 – reflecting a year-on-year increase of 87.62 percent.
However, the majority of the revenue generated was gulped by production costs, as the latter rose by N183.27 billion or 105.13 percent from N174.32 billion to N357.60 billion.
Nigerian Breweries also saw an increase in its loss after tax last year, which climbed to N113.61 billion – a 62.24 percent increase compared to the N70.02 billion loss reported in 2023.
Guinness Nigeria
Guinness Nigeria closed last year with an 82.05 per cent increase in its turnover, reporting N259.60 billion as revenue against the N142.59 billion generated in 2023.
The increase in revenue was not enough to expand the company’s market share during the review period, as Prime Business Africa analysis showed that it slightly dropped from 14.04 per cent to 14 percent.
Further analysis disclosed that during the period in review, Guinness’ cost of production grew from N96.65 billion to N200.69 billion – indicating an increase of 107.53 per cent in 12 months.
While Guinness was unable to curb the hike in production expenses, the company managed to lower its loss compared to industry rivals, as the brewer declined to N302.75 million from N5.23 billion.
Champion Breweries
While Champion Breweries saw a decline in its market share, which dropped from 1.25 per cent to 1.12 percent, the company was the only brewer whose revenue grew faster than the cost of production.
The financials of the company showed that revenue was up by 64.43 per cent after rising from N12.70 billion to N20.89 billion.
This surpassed the 59.44 percent increase in Champion Breweries’ cost of sales, as the company expended N12.17 billion on the production of its product, up from the N7.63 billion spent in 2023.
Champion Breweries also ended the period as the only alcoholic and non-alcoholic producer with a profit after tax, after reporting N816.99 million net income in 2024, against the N370.56 million PAT reported the year before, indicating an increase of 120.47 per cent.
For press releases, tip-off, and corporate information, call 08149575257 (hotline)
Email: publisher@primebusiness.africa and editor@primebusiness.africa
