Ilesha-based International Breweries Plc said its losses in the first-half of the year (Apr – Sept) narrowed to N52m, from ₦1.9bn in the previous year.

The brewer blamed the loss on unrealized foreign exchange loss which skyrocketed 894% in the six months to ₦983m ($2.7 million). The maker of Trophy lager said it had a particularly difficult second quarter as much of the FX loss came from this period, rising 4,238% to ₦945m ($2.6 million). The net loss in Q2 was even far much greater, at ₦1.2bn, from ₦216m.

The FX loss had a material impact on cost of sales which grew 34% in the first-half to ₦9.4bn. Administrative expenses also weighed on the company’s earnings, leaping 34% to ₦3.6bn and rising nearly 50% in the second quarter to N2bn.

Despite the loss, the firm said that revenue in the first-half grew 29% to ₦17.4bn ($47.9 million) from ₦13.5bn ($37.1 million) in the previous year.

International Breweries which is in the midst of a merger with its sister companies, Onitsha-based Intafact Beverages Limited and Pabod Breweries based in Port Harcourt announced in October that it was awaiting final regulatory approval from the Nigerian Securities and Exchange Commission (“SEC”) and the Nigerian Stock Exchange (“NSE”), as well as sanction by the Federal High Court (“FHC”), after which the merger becomes effective. All three companies are indirect subsidiaries of Anheuser-Busch InBev inherited from the merger with SABMiller in 2016.