As part of measures to diversify its raw material sources in the bid to sustain growth and deliver superior value to stakeholders, Nigerian Breweries Plc plans to upscale to 60 per cent sourcing of its raw materials before the year 2020 from its present 40 per cent.
At the pre-AGM media briefing in Lagos, Managing Director Nigerian Breweries PLC, Mr. Nicolaas Vervelde said that the company’s energy consumption declined by two per cent during the 2016 financial year.
Vervelde said that the company intends to take advantage of the 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 him the company has successfully tracked energy consumption, reduce waste and improve on efficiency in all departments.
Assuring stakeholders of continued improve returns, Vervelde said “It is anticipated that economic activities will improve in 2017 considering the far reaching fiscal and monetary measures being put in place 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 further said “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.
