NIGERIAN BREWERIES: 2021 AUDITED FINANCIAL STATEMENTS

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Nigerian Breweries Plc

CR: 613

Annual report and accounts 2021

company profile

Nigerian Breweries Plc, the pioneer and largest brewing company in Nigeria, was incorporated in 1946 as “Nigerian Brewery Limited”. In June 1949, the company recorded a turning point when the first bottle of STAR lager rolled off its Lagos Brewery bottling lines.

In 1957 the company commissioned its second brewery in Aba and the name became “Nigerian Breweries Limited”. This was followed by Kaduna Brewery in 1963 and Ibadan Brewery in 1982. Following the coming into force of the now repealed Companies and Related Matters Act in 1990, the name of the company was changed to “Nigerian Breweries Plc to reflect its limited public liability. status.

In 1993 the company acquired its fifth brewery in Enugu and in 2003 a sixth brewery (Ama Brewery), located at Amaeke Ngwo in Enugu State was commissioned. Operations in the former Enugu Brewery were discontinued in 2004 following the completion of the Ama Brewery. A state-of-the-art malting plant was acquired in Aba in 2008.

In October 2011, the Company acquired controlling interests in two companies, Sona Systems Associates Business Management Limited (“Sona Systems”), with two breweries in Ota and Kudenda, Kaduna, and Life Breweries Company Limited (“Life Breweries”) with a brewery in Onitsha. Another malthouse (located in Kudenda, Kaduna Brewery) was acquired as part of the acquisition of Sona Systems. Sona Systems and Life Breweries merged with the company in mid-2012. In late 2014, an enlarged Nigerian Breweries Plc emerged from a merger with Consolidated Breweries Plc. Three breweries at Imagbon, near Ijebu Ode, Awo-Omamma, near Owerri and Makurdi were added to the existing eight breweries as a result of the merger. The Onitsha and Makurdi sites were then transformed into distribution centers.

So, from its humble beginnings in 1946, the company now has nine fully operational breweries from which its high quality products are produced and distributed to all parts of Nigeria, in addition to the two maltings at Aba and Kaduna. It also has sales offices and distribution centers across the country.

Nigerian Breweries Plc has a rich portfolio of high quality brands: Star lager was launched in 1949, followed by Gulder lager in 1970. Maltina, the nourishing malt drink, was introduced in 1976, followed by Legend Extra Stout in 1992 and another malt drink, Amstel Malta in 1994. Heineken lager was relaunched in the Nigerian market in 1998. Fayrouz, the premium soft drink, was launched in 2006 while the energy drink in Climax herbal was launched in 2010. Following the acquisition of Sona Systems and Life Breweries in 2011, Goldberg lager, Malta Gold malt drink and Life Continental lager, were added to the brand portfolio. The company expanded its brand portfolio in 2014 with the addition of two Star brand line extensions – Star Lite and Star Radler. Also in 2014, following the merger with Consolidated Breweries Plc, “33” Export lager, Williams dark beer, Turbo King dark beer, More lager and a malt beverage, Hi Malt, became part of of the company’s product offering. The Ace brand in the Ready-to-Drink (RtD) category was launched in 2015 while Tiger lager, a premium international brand, was added to the brand portfolio in 2018. In 2020, the company has further expanded its rich brand portfolio with the launch of two variants of the Maltina brand, Maltina Pineapple and Maltina Vanilla. Other brands launched in 2020 were Amstel Malta Ultra, an extension of the Amstel Malta brand, Star Radler Red Fruits, a variant of the Star Radler brand, and Desperados, another international premium beer brand with a distinctive tequila flavor.

The company has an export business that dates back to 1986. Current export destinations are the United Kingdom, the Netherlands, the United States of America, Canada, parts of Africa and parts from the Middle East and Asia.

As a large brewing company, Nigerian Breweries Plc encourages and continues to play a major role in the establishment of ancillary businesses. These include manufacturers of bottles, cans, crown caps, labels, cartons and plastic crates as well as service providers, including those in the hospitality, retail, transport , events, advertising and marketing communication.

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Nigerian Breweries Plc

CR: 613

Annual report and accounts 2021

Company Profile (continued)

The company was listed on the Nigerian Stock Exchange “NSE” (now Nigerian Exchange Limited – “NGX”) in 1973. As of December 31, 2021, it had a market capitalization of approximately ₦404 billion, making it one of the largest companies in Nigeria by market capitalization. It has received several awards in the capital market, including NSE Chairman’s Merit Award in Brewing Industry, NSE Listed Company of the Year Award, NSE CEO Distinguished Award for compliance and the NSE CEO award as the most compliant listed company in the market. Nigerian Stock Exchange. Nigerian Breweries Plc has also received awards for excellence in corporate governance, including the Excellence in Corporate Governance Award (Corporate Category) from the Institute of Chartered Secretaries and Administrators (ICSAN) and the Nigeria Corporate Governance Award from the Institute of Directors.

Nigerian Breweries is also the recipient of several awards and accolades in other areas of its business including Product Quality, Marketing Excellence, Productivity and Innovation, Health and Safety, Public Relations, Responsibility corporate social responsibility and sustainability.

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