Nigerian Breweries Plc (NB) has acquired the remaining 20% shareholding in Distell Wines and Spirits Nigeria Limited (DWSN), completing its full acquisition of the company. This move follows the execution of a sale and purchase agreement with DWSN's minority shareholders, Ekulo International Limited and Next International Nigeria Limited.
The acquisition is expected to reduce complexities and enhance decision-making, supporting NB's ambition to expand beyond beer. DWSN has already relocated its production from rented premises to NB's facilities, enabling it to leverage economies of scale and strengthen its position in the wines, spirits, and ready-to-drink (RTD) categories.
NB's full-year revenue for 2024 grew significantly by 80.8% year-over-year to reach N1.08 trillion. However, the company reported a post-tax loss of N144.8 billion for FY 2024 due to increased cost of sales and other challenges. To address these challenges, NB initiated a business recovery plan in 2024, which included a Rights Issue.
How well do narratives help inform your perspective?
Disclaimer
The user WaneInvestmentHouse holds no position in NGSE:NB. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.