Nigerian Breweries, the largest brewing company in Nigeria, vowed to ensure a positive financial year, despite the challenging operating environment for manufacturing in the country.
The brewing firm observed that the operating environment in the first quarter (Q1) 2019, remained challenging and similar to 2018, but expressed confidence in its clear strategy to deliver good return on investment for all its stakeholders.
The Nigerian Government promised to review the proposed rise in duty, but has planned another wave of Excise Duty increase on beer for 2019. This is expected to come into effect by mid-year, and will lead to rate hike from the 30 naira per litre introduced in 2018 to 35 naira per litre.
In 2018, Nigerian Breweries incurred 25.8 billion naira as excise duty expenses, for which the Managing Director and Chief Executive Officer, Jordi Borrut Bel, said company results for the year were adversely impacted by the increased excise duty rates.
Bel said the increase in excise duty rates, in addition to a challenging environment and the double digit inflation rate, has penalised the business community.
The Corporate Affairs Director, Nigerian Breweries Plc, Sade Morgan, revealed that plans are underway to take the company’s current 57 percent local sourcing of its raw materials to 60 percent, a feat to be achieved by working with Nigerian farmers.
According to Borrut Bel, “we want to win with the Nigerian societies and communities because we believe in Africa’s biggest market with a young and dynamic population showing promising indicators for growth. We also believe that the country’s demographics will play a huge role in the future”.
Bel noted that going forward, the company would prioritise developmental efforts through its three pillars of growth. He said “these include expanding leadership in premium brands, build scale in mainstream to drive malt growth by leveraging on innovation and improving end to end productivity”.
The Marketing Director of Nigerian Breweries, Emmanuel Oriakhi assured that Nigerian Breweries would continue to produce top quality brands to meet the ever changing needs of the Nigerian consumer, stressing that with the help of its robust portfolio, it would ensure consumers get value for their hard earned money.