International Breweries reports first quarter loss despite strong revenue growth

International Breweries Plc, the Nigerian unit of Belgian brewer Anheuser-Busch InBev (AB InBev) reported ₦2.2bn in net loss for the first quarter of 2018 ending in March.

The brewer blamed the loss on rising costs including skyrocketing foreign exchange loss which grew by 310% to ₦158 million. Administrative expenses and net finance cost rose by 300% and 367% respectively to ₦6.3bn and ₦3.6bn. Cost of sales also grew 227% to ₦16.8bn, in part driven by FX and the FX impact on financing cost which led to the record ₦2.2bn loss.

Despite the loss, IB Plc said sales grew by 175% to ₦25.9bn, from ₦9.4bn in the prior year, fueled by a 272% increase in marketing and promotional expense.

The brewer announced in September it would be changing its financial year-end to 31st December from 31st March of every year following the merger with its sister companies – Intafact Beverages Limited and Pabod Breweries Limited. The prior year quarterly comparative (Apr – Jun 2017) is different from the current quarter under review (Jan – Mar 2018).

Updated: 7 May 2018  1:02 PM

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