International Breweries Plc, said on Friday that year-end results for the 2016/2017 financial year ending on 31st March 2017 showed a 41% growth in revenue to N32.7bn, up from N23.3bn in the previous year.

The maker of Trophy Lager and Betamalt saw a 42% rise in Gross Profit, helped by increased capacity and further market penetration as noted by Anheuser-Busch InBev, its parent company to analysts. International Breweries spent more resources on promotions as marketing expense surged 142% to N5.09bn, from N3.6bn in the preceding year.

However, the brewer continued to face challenges with low liquidity in the foreign exchange market as cost of sales climbed 39.7% to N17.5bn, indicating a higher input cost, driven by inflation and a weaker naira. The company also saw its net finance cost jump 204% to N5.2bn, from N1.7bn, fueled by unrealized foreign exchange loss.

The end result was a 61% decline in profit after tax to N1.03bn, down from N2.7bn in 2015/2016 financial year. The company recorded a –N473m net loss in the first nine months of the 2016/2017 financial year.

International Breweries announced on 6th June that it was exploring a merger with the two other independently operated breweries controlled by Anheuser-Busch InBev, Onitsha-based Intafact Beverages Limited and Pabod Breweries Limited located in Port Harcourt. The merger is pending subject to regulatory and shareholder approvals.

AB InBev, which assumed control of all three breweries following the conclusion of the merger with SABMiller plc on 10th October 2016 has 72.2% shareholding in International Breweries Plc, 75% controlling interest in Intafact Beverages Limited and 82.8% stake in Pabod Breweries Limited.