Forex: Nigerian Breweries Suffers N70.6bn Losses In 2023 Q2

Nigerian Breweries Plc has reported an exchange rate loss of N70.6 billion for the second quarter of the year ended June 30th, 2023.

This is according to the information contained in its just published interim report for the first half of the year.

The losses were as a result of the unification of the exchange rate which has led to forex losses upon the revaluation of its dollar-denominated loans.

The company reported a net loss on foreign exchange of N70.6 billion taking the year-to-date exchange rate loss to N85.2 billion.

The losses contributed to a massive N47.7 billion reduction in net assets.

Important to add that the losses did not impact cash as the company still has a healthy cash balance of N34.9 billion.

However, its negative working capital suggests it has to find money to repay its loans when they fall due within a year. It could also restructure the loans.

The current losses are likely to impact full-year profits considering that NB also reported a profit after tax of N13.1 billion last year (2022).

NB has so far reported back-to-back losses in the first two quarters of the year after reporting a loss before tax of N17.4 billion