International Breweries Plc Reports Loss of N70 Billion for 2023 FY

It was reported that after the Central Bank of Nigeria unified the foreign exchange market, International Breweries Plc reported a loss of N70.03 billion for fiscal year 2023, up from N21.63 billion the previous year.

For the 2023 fiscal year, International Breweries announced a N55.98 billion net foreign loss, compared with the N5.11 billion net foreign exchange loss in 2022.

International Breweries revealed that, compared to N8.36 billion realised and reported in 2022, a net foreign exchange loss of N14.4 billion was realised in 2023.

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The International Breweries had its worst performance over a decade, despite a 19.18% revenue increase to N260.6 billion in 2023 from N218.65 billion in 2022. Operating costs largely drove this growth.

Commenting on its 2022 financials, the Managing Director of International Breweries, Mr. Carlos Coutino, said in a statement, "Our momentum can be attributed to our consistent execution of our commercial strategy, revenue management initiatives, and the implementation of a deliberate route-to-market strategy alongside a technology-enhanced trade ecosystem, allowing us to serve our distributors and retailers better."

Coutino repeated the company's dedication to improving its operating model, continuing to invest in its workforce, and promoting a culture of long-term growth and value creation.

However, the company reported N174.33 billion in cost of sales in its audited results and accounts for the 2023 financial year, up 20.16 percent from N145.08 billion in 2022.

It also announced N29.72 billion in finance costs for 2023, which signifies an increase of 178% from N10.68 billion in 2022. This increase was primarily due to N24.7 billion in interest costs on borrowings in the year under review, up from N5.38 billion in the same year.

The company expressed confidence regarding the growth and profitability potential of the beer industry, and it is self-assured in its capacity to provide superior long-term value in its pursuit of a future filled with more cheers.

In a filing on the Nigerian Exchange Limited (NGX), the company's secretary, Marian Reginald-Ukwuoma, announced that at the brewer's extraordinary general meeting on April 9, shareholders would be asked to approve the conversion of an intercompany loan of $379.9 million to equity.

Anheuser-Busch InBev (AB InBev) is a multinational beverage and brewing conglomerate headquartered in Leuven, Belgium. It owns AB InBEV Nigeria as a subsidiary. 

The company said the board would request that "the loan of $379.9 million granted to International Breweries Plc by AB InBEV Nigeria Holdings BV ('the Shareholder Loan") in respect of the repayment of the loan obtained by the Company (International Breweries) from Citibank Abu Dhabi be and is hereby approved in accordance with the terms and conditions presented by the Board of Directors. "

In addition, shareholders would evaluate and, if considered necessary, approve the directors' authorisation to apply any convertible loan, shareholder loan, or other loan amount or facility owed to any individual from International Breweries as may be agreed upon between the individual and the business as payment for any shares subscribed for in the shareholders' approved rights issue.

According to International Breweries, adherence to all relevant legal and regulatory obligations will depend on adherence.

International Breweries further stated that the board would seek permission for directors to sign, approve, and/or execute all documents and name advisers and other parties that may be required to implement the proposed debt-to-equity, including, without limitation, adhering to any regulatory body's guidelines.

What Is International Breweries Plc Share Price?
As of the time of this published article, the share price of International Breweries Plc is N4.50.