Following a price rise in February, Nigerian Breweries Plc has announced another increase in the cost of its products.
The new price review will go into effect on March 15, 2024.
This was revealed by the corporation in a review notification that Nairametrics was able to get. The communication was signed by the zonal business manager and distributed to consumers in the South-West zone.
The notice states that the most recent pricing revision is based on the necessity of lessening the effects of increasing input costs.
“As previously informed, we will review the prices of some of our SKUs effective Friday, March 15, 2024,” the statement read. Due to the ongoing increase in input costs and the necessity to lessen their effects, this review is now required. “All open orders in our system at 00.00 hours on Friday, March 15, 2024, will be invoiced at the new prices,” the statement reads.
The business promised to support its distributors’ sales and distribution initiatives going forward.
History
Nairametrics first reported on the Nigerian Breweries price increase earlier in February, citing the necessity to protect the business from growing manufacturing expenses. That was the third upward price review in a year, the report from then stated.
Things to be aware of
In the last year, businesses operating in the manufacturing and fast-moving consumer goods (FMCG) sectors have experienced notable surges in input costs due to the rising cost of imported raw materials, outpacing the depreciation of the naira.
Nigerian Breweries’ troubles are a part of a larger pattern. Nigeria’s difficult macroeconomic circumstances in 2023 had a significant negative influence on the operation of manufacturing companies operating there, both native and foreign. By year’s end, this resulted in significant shutdowns and exits.
Additionally, as the CEO Hans Essaadi admitted during the 2023 results announcement, inflation has had a major impact on patronage, with customers no longer being able to afford Goldberg. He also mentioned that the company may have difficulties in 2024 due to pressure on consumer spending, increased input costs, and inflation.
The company’s FX losses, which totaled N153 billion, were the primary cause of its N106 billion net loss for the year that ended in December 2023.