Business
Nigerian Breweries faces N2.5bn lawsuits
Nigerian Breweries have been slammed with various lawsuits that could cost the firm 17.9 per cent of its net profit, Ripples Nigeria has learnt.
It was gathered that Nigerian Breweries has pending litigation and claims that could lead to the brewer losing N2.5 billion.
This is higher than the value of litigation against the alcoholic producer in 2021, which was N1 billion. Although Nigerian Breweries said that based on independent legal advice, the risk of loss is lower than 50 per cent.
“There are certain lawsuits and claims pending against the Company in various courts of law which are being handled by external legal counsels.
Read also:Nigerian Breweries declares N12.9bn as shareholder dividend for 2021
“The contingent liabilities in respect of pending litigation and claims amounted to N2.5 billion (2021: N1 billion) as at 31st December 2022. In the opinion of the Directors and based on independent legal advice, the risk of loss is lower than 50%, thus no provision has been made in these financial statements,” a statement obtained from Nigerian Breweries’ earnings report for the period of 2022 revealed.
The N2.5 billion tied to the legal issue is 17.9 per cent of Nigerian Breweries’ profit after tax which was N13.92 billion in 2022. The year before, the net profit posted by the firm was N12.92 billion.
Meanwhile, last year, the company reported its revenue from drink sales rose by 25.9 per cent to close 2022 with N550.47 billion, in contrast to the N437.19 billion generated in 2021.
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