Nigerian Breweries, Guinness, International Breweries Generate N221.239bn In 3 Months
The Nigerian Breweries, Guinness Nigeria, and International Breweries have recorded a 14.08% increase in collective revenue to N221.239 billion in the last quarter that ended September 30, 2022, compared to N193.927 billion in 2021.
Nigerian Breweries Plc retained its position as the brewer with the highest market share for the quarter that ended September 30, 2022, despite operational headwinds.
NewsBeatng gathered that Nigerian Breweries holds about 54% of the total market share of the three top brewers in the country.
The daunting challenges posed by strong macroeconomic headwinds, which include the erratic supply of public electricity, falling naira, weak logistics, insecurity, and other high costs of operations attributable to poor infrastructure, have continued to make the business operating environment difficult, especially for the real sector of the economy.
The financial scorecard for these companies showed that the high cost of production and inflationary pressure is making Nigeria’s top three beer makers record a combined cost of sales of N156.854 billion, an 18.2% growth over N132.698 billion reported in comparable three months period of last year.
The cost of sales consumed about 70.90% of the total revenue of these brewers.However, while these companies focus more on improving their profitability and financial performance they are also fighting for market share and brand awareness to be able to remain relevant and increase return on investment to their shareholders.
Guinness Nigeria Plc which recently overtook International Breweries Plc as the second-largest Brewer quoted on the Nigerian Exchange based on the market share of revenues sustained its position in the last quarter that ended September 30, 2022.
Based on NewsBeatng’s investigation, Nigeria Breweries remains the largest Brewer in Nigeria by market shareholding holding on to 54% of the total revenues of N221.239 billion reported by the three largest brewers.
Nigeria Breweries has held on to the number one spot since we started tracking this data in 2013.Guinness Nigeria Plc however retained its number two position at the end of September 2022 with a market share of 24% of the total revenue.
While International Breweries trailed with a market share of 22.2% of total revenue. Important to note that Guinness reports its year-end on June 30th, however for this analysis we used the first quarters ending September 30, 2022. This aligns with International Breweries and Nigeria Breweries which both use calendar years as their third quarter.