According to the first quarter results of the four major brewers in Nigeria, Nigerians have consumed N599.11 billion worth of beer in six months, spanning from January to June 2022. At the end of the first half (H1) 2022, Champion Brew emerged as the best performing company in the brewery industry, owing to the fact that Nigerian Breweries and Guinness Nigeria lost market shares; Nigerian Breweries fell slightly from 45.8 percent to 45.7 percent while Guinness’s share also reduced from 35.1 percent to 34.5 percent.
The industry analysis of their revenue growth between January to June 2022, as gathered by Prime Business Africa, revealed that Nigerian Breweries, Guinness Nigeria, International Breweries and Champion Brew made a combined sum of N599.11 billion. The four largest brewers in the country increased collectively by 31 percent in comparison to the N456.44 billion that was made during the same period in 2021. The recorded net profit also accelerated by 54 percent, rising from N23.44 billion reported in H1 2021 to N36.14 billion in H1 this year, 2022.
Nigerian Breweries generated over N19 million in H1 2022.
Guinness Nigeria, considered as the company with the lowest performance in terms of revenue growth, reported 28.9 percent in turnover growth, rising from N160.41B in H1 2021 to N206.82B in H1 this year, 2022. Regardless of its low performance in economic growth, it records the highest growth in profit after tax, rounding off the first half of the year with N15.65B, which totals 1146.7 percent year-on-year growth after comparison to the N1.25B of H1 2021.
Nigerian Breweries, notwithstanding its increase in revenue growth to N274.03B within January to June this year, is recorded as the third best performing company in the brewery industry, due to its 30.9 percent growth rate when compared to the N160.41B turnover of the first half of last year, 2021. However, the company grew its net profit by 142.8 percent year-on-year, generating over N19B in the first six months of 2022 and accelerating above the N11.22B profit after tax of H1 2021.
Champion Brew recorded highest revenue growth of 41.6%.
The sales of the products of International Breweries, generated for the firm over N111B within the first half of 2022, revealing a difference of 35.9 percent between last year’s sales profit, which was N81.96 billion within the same period last year and this year’s. However, failure to surpass the N13.88B profit after tax of H1 2021, has led to a -97.5 percent decline in the company’s net profit. Howbeit, it reported net profit of N336.20 million in H1 this year.
Champion Brew, although holding a small share of the market, recorded the highest revenue growth of 41.6 percent. This growth has recorded the brewery firm as the best performing firm in the industry. Also, compared to the N4.84B reported in the first six months of 2021, it generated N6.86B in H1 2022. In similarity to Nigerian Breweries and Guinness, Champion Brew also boost its profit after tax with a report of 141.6 percent growth year-on-year, with its net profit rising to N1.07B in H1 2022.
In 2019, beer industry contributed $2.294 billion to the national GDP.
According to a worldwide report on the assessment of the beer industry’s global economic impact, released by the World Breweries Alliance (WBA), the beer industry has contributed $555B to global GDP, created 23.1 million jobs and contributed $262B to governments’ revenue globally in 2019. The report further revealed that the Nigerian beer industry, ranked as 30th of 70 top beer markets in the world, contributed $2.294B to the national GDP, created 309,200 jobs and contributed $526.2B into the country’s government revenue in 2019.