Nigerian Breweries Plc, said on Wednesday that net income for the second quarter 2016 fell 24% to N8.6bn, from N11.4bn recorded in the same period in 2015.

The brewer of Star Lager, Gulder, among others hinted in a released statement accompanying its first quarter results in April that trading conditions in Nigeria remained tough amid a weaker consumer environment caused by the slump in global oil prices. The company predicted that forthcoming quarters in 2016 would be more difficult despite a better than expected Q1 result.

Revenue for the quarter also came in lower by 2.3% to N79.8bn, from N82bn in 2015. Finance cost for the brewer skyrocketed 447% to N5.6bn, from N1.4bn in the previous year.

In a released statement by the company, it said: “The market and the operating environment during the last three months were more difficult than the First Quarter of the year……Rising inflation combined with higher input costs as a result of scarcity of foreign exchange, led to a flat Operating Profit versus the prior year.  Despite a lower interest cost from the Commercial Paper programme, Profit After Tax declined ……, mainly due to foreign exchange losses which occurred in June.

“The operating environment is expected to remain challenging for the rest of the year. The Company remains focused on its twin agenda of Cost Leadership and Market Leadership supported by innovation, and the Board remains positive on the Nigerian market for the medium and long term.”

Pre-tax profit for the company declined 36% to N10.5bn, from N16.5bn recorded in the same period in 2015.

Nigerian Breweries Plc is the largest brewer in Nigeria by volume and sales and is majority owned by Heineken N.V.