International Breweries Reports N113 Billion Loss, Now on 7-year Losing Streak

• Investors are worried as a foremost Nigerian Brewery has now reported a seventh year of heavy losses after tax
• The company lost over N270 billion combined despite owning several brands that are loved by Nigerians
• The brewery manufacturer has raised capital to offset some of the losses so far, and now shares its next steps

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

Foremost Nigerian brewery, International Breweries Plc, has reported another losing year, sending worry signals to investors.

The 2024 audited financial report filed on the Nigerian Exchange Limited (NGX) shows that the brewer recorded a N113 billion loss after tax.

This is a 62.25% negative growth from the N70.03 billion loss after tax reported in 2023, and the seventh consecutive year of reporting losses after tax.

The brewer owns several notable brands in the Nigerian market, including Hero, Trophy lager beer, Grand malt, Beta Malt and others.

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International Breweries on 7-year losing streak

The losses started in the 2018 financial year when the company reported a N3.87 billion loss after tax.

The loss after tax increased in 2019 to N27.79 billion and declined slightly in 2020 to N16.08 billion.

In 2021, International Breweries reported N17.66 billion, and in 2022, another loss of N21.63 billion.

In 2023, the loss shot up to N70.03 billion, and rose again in 2024, to N113 billion. This brings it to a total of N270.06 billion lost in seven years.

Interestingly, its number one competitor, Nigerian Breweries Plc, has recently exceeded the N1 trillion revenue mark.

The recently released financial results for FY 2024 show that the company recorded an impressive N1.1 trillion for the year, up 81% from the N599.6 billion recorded in FY 2023.

International Breweries optimistic about growth

Despite these losses, IBPlc remains optimistic about its growth, as it has now reported a nine-year high in its revenues.

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The PUNCH reports that in 2023, the company reported N260.59 billion in revenues, and this number jumped up to N488.96 billion, marking an 87.63% growth year-on-year.

The 2024 revenue also represents the highest in nine years, an indicator that International Breweries may be on its way back to profitability.

The report traces the bulk of the recent losses to liquidity problems in the foreign exchange market and the impact of naira devaluation on FX-denominated debts and liabilities.

The year 2024 brought in positive operating cashflows that covered short-term obligations.

IBplc has also raised fresh capital through a N588 billion rights issue and used it to settle outstanding loans. This, according to the report, reduces its FX exposure and positions IBplc for a return to profitability.

Nigeria Breweries acquires major competitor

In related news, Nigerian Breweries Plc has completed its acquisition of Distell Wines and Spirits Nigeria Limited (DWSN) in a new deal that gives it the remaining 20% stake.

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This move completes the earlier acquisition of 80% stakes in June 2024 and makes Nigerian Breweries the sole owner of the company.

The acquisition also brings many new products into the company's portfolio, including Chamdor and Hunters Dry, and the production operations have already been moved into the Nigerian Breweries' facilities.

Proofreading by James Ojo, copy editor at Legit.ng.

Source: Legit.ng