Consolidated Breweries plc has recorded an increase in net profit by about 12 percent. The company’s revenue for 2013 closed at N34billion, while profit after tax increased by 12 percent from N1.103billion in 2012 to N1.237billion in 2013.
Oyin Odutola-Olurin, chairman, Consolidated Breweries plc expressed confidence in the Nigerian beer industry with potentials for positive growth and developments in the coming years.
“Our recent acquisitions and investments in capacity expansion have positioned our company for future growth and competitiveness”, she said.
Boudewijn Haarsma, managing director, Consolidated Breweries plc noted that in spite of increased competition in the value for money segment, Consolidated Breweries plc sustained its leadership.
To position for the significantly increased competition, the Company, according to him, has focused on increasing the efficiency of its operations and made additional investments of N6billion in plant and machinery across its breweries in Nigeria.
While explaining the massive investments the company carried out in the past two years, he said “If you take the totality of our investment in the last two years, it amounted to about N15 billion. In 2013 alone, N6billion was invested in new equipment, capacity expansion and process standardization. This has created improvements in our operational efficiency and cost savings.
The impact of these measures, although not yet very visible in our 2013 results, is already manifesting in our performance in the first quarter of 2014. In quarter-one of 2014, we reported very strong volume growth well ahead of the market average”.
Also in 2013, the company effected the merger with Benue Breweries Limited and DIL/Maltex and also divested from Champion Breweries Plc, which is showing positive results.
While decrying inclement operational environment, Haarsma said “growth in the beer market stalled over the last two years, following several years with average growth rates of 10%. The slowdown in growth was on account of increasing pressure on consumers’ disposable income. At the same time, sales of the most affordable brands in the market, also known as the ‘value for money segment’, grew faster than before. This led to significantly increased competition in the ‘value for money segment’ as all brewers have reacted to the changing market dynamics and are increasing their commercial focus and investments behind their more affordable brands.
Consolidated Breweries’ brand portfolio has been historically focused on the ‘value for money segment’ and has thus been less severely impacted by the declining growth in the beer market. The Company has strong brands in the Lagers, Stouts and Malts segment”.
According to him, the efforts were not only limited to capacity expansion.
“In 2013 we launched a new bottle for our flagship brand, “33” Export lager beer, which has been very well received in the market
