Nigerian Breweries has reported a significant surge in foreign exchange (FX) losses, reaching N160.48 billion by the end of the third quarter of 2024, as detailed in its unaudited financial results filed with the Nigerian Exchange Limited on Wednesday. The company, one of the country’s largest brewers, experienced an 85% increase in FX losses year-over-year, rising from N86.83 billion in September 2023.
According to the report, Nigerian Breweries incurred an additional FX loss of N48.21 billion in the last quarter alone, underscoring the financial impact of ongoing currency volatility. These growing losses reflect the challenging economic environment facing many Nigerian companies as they grapple with foreign exchange fluctuations, which have been exacerbated by inflation and other macroeconomic factors.
The brewer’s rising FX losses indicate mounting challenges in managing international transactions, with higher operating costs affecting profitability. As the Nigerian economy continues to experience currency instability, Nigerian Breweries and other companies with significant foreign dealings may struggle to mitigate the adverse impacts on their bottom lines.
Amid these challenges, Nigerian Breweries’ financial performance will likely remain under pressure. Investors and stakeholders will watch closely for any strategic steps the company may take to minimize future losses and stabilize its financial position in the coming quarters.
