As part of measures to sustain growth and ensure profitability for all stakeholders, Nigerian Breweries Plc is to attain 60 per cent sourcing of its raw materials before the year 2020.
Briefing Journalists on Tuesday in Lagos on the company’s performance, Managing Director, Nicolaas Vervelde explained that energy consumption declined by two percent during the 2016 financial year.
Explaining further, Vervelde who spoke at a pre-yearly general meeting with Journalists in Lagos explained that the company intends to take advantage of an existing Memoradum of Understanding (MoU) with the Federal Ministry of Agriculture and Rural Development (FMARD), adding that plans are underway to harness the benefits of Cassava.
According to Vervelde, the company has successfully tracked energy consumption, reduce waste and improve on efficiency in all dapartments.
Assuring stakeholders of improve returns, Vervelde who spoke on sundry issues said: “It is anticipated that economic activities will improve in 2017 considering the far reaching fiscal and monetary measures being planned and implemented by the Federal Government. It is therefore hoped that with the gradual rise in the price of oil and a steady increase in the volume of oil output, the Naira will be strengthened and forex will be more available for businesses”.
He added: “The brewed product market would remain competitive and consumers are expected to continue the down-trading as they seek for more affordable brands. Cost leadership and market leadership supported by innovation remain our key strategic pillars”.
For its first quarter performance, the company had declared a profit after tax of N11. 44 b,indicating 9 per cent increase over the N10.45 billion recorded in the same period in 2016.
Also, the company recorded a revenue of N91.29 billion for the period, signifying an 18 per cent increase over the N77.55 billion achieved in 2016.
Also, the cost of goods sold increased by 25 per cent as a result of higher input costs while results from operating activities and profit after tax grew by 7 per cent and 9 per cent respectively, impacted by lower net finance charges and a continued focus on its cost efficiencies.
Revenue for the period grew by 18 per cent due to the impact of price increases implemented in 2016 to cushion the effects of the operating environment.
Photo Caption: Managing Director, Nigerian Breweries Plc (middle), Nicolaas Vervelde; Finance Director, Nigerian Breweries Plc (left), Mark Rutten; and Company Secretary, (right), Uaboi Agbebaku, at the company’s Pre-AGM briefing in Lagos on Tuesday.
