The brewery industry has continued to reel under pangs of rising inflation, foreign exchange (FX) scarcity and poor infrastructure, with four out of the five listed equities under the sector posting an average of 15 per cent year-to-date (YTD) loss.
  
The four brewers – Nigerian Breweries (NB), International Breweries, Guinness and Champion – with a combined market capitalisation of N1.12 billion continue to record losses in their share valuation since the beginning of the year. Data from the Nigerian Exchange Limited (NGX) showed that only Golden Guinea has returned 17.5 per cent gain to investors.
  
A look at the share price performance at the close of transactions on Tuesday showed that NB with a market capitalisation of N277 billion began the year with a share price of N36 but shaved 25 per cent off that price valuation to close at N27 on Tuesday.

The shareholders’ worries are compounded by a seven per cent loss from October 15th till date.
  
Similarly, International Breweries with a market capitalisation of N673 billion closed trading on Tuesday at N4 per share from N4.80 kobo at which it reopened for trading at the beginning of the year, shedding 16.7 per cent off its price valuation.
  
For Guinness, its market capitalisation stood at N142 billion. The company’s share price also depreciated from N66 to N65, representing a loss of 1.52 per cent.

Champion Breweries also suffered the same fate as its price valuation which stood at N4.15 at the beginning of the year, shed 16.4 per cent to close on Tuesday at N3.46 kobo.

Its market capitalisation stood at N31 billion. President of NewDimension Shareholders Association of Nigeria, Patrick Ajudua, described the situation as unfortunate. He pointed out that some of the firms posted improved performance in revenue but that the profits were wiped off by FX losses.
 
 “Most of the raw materials are sourced abroad, hence they may continue to suffer FX losses due to instability in exchange rate and inflationary pressures. I wonder when shareholders will start reaping returns on their investments.
  
“Government must come to the aid of the sector through policy interventions such as tax incentives and do everything with its powers to ensure FX rate stability and control inflation,” he said. President of the Independent Shareholders Association of Nigeria, Moses Igbrude, said the companies are making operational profits but suffer high costs of operation. He said brewers must find a way to raise money from their owners (majority shareholders) to pay off or reduce their exposure to dollar loans.
  
According to him, that would help to increase their market shares, minimise the cost of operations and restore them to sustainable profitability. Indeed, the sector has been battling rising inflation, insecurity and FX shortages, which have continued to impact the cost of sales.
  
The share price depreciation is part of their broader crisis. Nigerian Breweries reported a net loss of N149.5 billion in its unaudited nine-month 2024 results, primarily driven by a substantial FX loss of N160.48 billion.