Nigerian Breweries Upbeat Amid Forex Scarcity, Insecurity
Nigerian Breweries Plc has reaffirmed its commitment to investing in Nigeria despite lingering unavailability of foreign exchange and heightened insecurity in the country.
The Managing Director and Chief Executive Officer, Nigerian Breweries Plc, Mr. Hans Essaadi, explained that headwinds have deepened for businesses in the country and the nation at large, but optimistic that the company would forge ahead with capacity expansion programmes despite the harsh business terrain.
Essaadi at Nigerian Breweries’ pre-annual general meeting in Lagos, said the move is a testament of the company’s long term view and commitment to Nigeria.
“For over 77 years, we have built a strong legacy weathering so many storms. We have been faced and still being faced by storms especially with the Russia-Ukraine crisis that has made the price of diesel skyrocket. We are optimistic that we would sail through like we have always done over the past 77 years,” he said.
He lamented over the scarcity of foreign exchange for businesses in the country, stressing that over 50 per cent of its input cost is largely dependent on imports.
“Global energy crisis is skyrocketing with inflation putting lots of pressure on disposable income as this also puts pressure on our revenues. The insecurity situation is also a major challenge as it is hindering both local and foreign investments in the country,” he said.
He said the long term fundamentals for Nigeria are positive, but lamented that the first half of 2023 has been extremely difficult for industries.
He advised that a predictable and sustained excise roadmap is a significant success factor for increased government revenue.
In his outlook for 2023, the Nigerian Breweries boss said with the benefit of an enabling environment, the Nigerian beer market fundamentals remain positive with growth potentials, but bemoaned that Nigeria’s macroeconomic indicators, security and infrastructure however continues to remain high-risk.
He further stated that lower disposable income and high input costs as a result of inflation and naira devaluation are putting margins under pressure, stressing that additional excuse burden will further cripple business performance in 2023 while also expressing concerns on the prolonged forex scarcity.
Also speaking, the Corporate Affairs Director, Nigerian Breweries Plc, Mrs. Sade Morgan, said sustainability is at the heart of Nigerian Breweries’ business, stressing that the company has continued to make steady progress on its Brew a Better World agenda focusing on raising the bar on climate action, accelerating its social sustainability agenda through community impact and advocating the moderate consumption of alcohol.