Cost of sales, totalling N337.3 billion, gulped N60.4 billion.

The pace at which the net profit of Nigerian Breweries accelerated in 2022 was considerably weaker than that of its revenue as record inflation in Nigeria pushed up expenses and other income dropped by 35.4 per cent.

Revenue was up by a quarter at N550.6 billion, less than one per cent of that earned from exports to countries outside its primary market Nigeria.

Cost of sales, totalling N337.3 billion, gulped N60.4 billion more than a year earlier, according to details of the brewer's audited financials. This is largely due to surge in raw materials spending, which alone accounted for 73.1 per cent of the expenses.

The beer-maker declared elsewhere in a note accompanying its earnings release that "Cost of Sales, Marketing, and Distribution expenses were under pressure due mainly to inflation, devaluation of the naira and high energy prices."

Selling and distribution expenses increased by 38.1 per cent, due to increased spending on transportation which, standing at N56.3 billion, consumed nearly three times that of the year before.

The company pared its finance costs - what the company spent on servicing debt - by 31.4 per cent, much of that after reducing its interest expense on lease liabilities from N11.1 billion to N8.4 billion.

Steep depreciation in the value of naira against the US dollar cost Nigerian Breweries N26.3 billion in net loss on foreign exchange transactions compared to N7 billion in 2022, the company stressing that as the major factor that depressed margin.

Profit before tax contracted by 26.8 per cent, while profit for the year climbed to N13.2 billion from N12.7 billion, reflecting a 4.1 per cent increase.

The firm also proposed a final dividend of N1.03 per share to shareholders in addition to the interim dividend of N0.40 per unit announced in October, bringing its total payout for the year to N13.9 billion (N1.43 per share).