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) accounts for only one company (IB Plc) while the current quarter under review is for the merged companies (Jan – Mar 2018).

Updated: 13 Aug 2018  12:06 AM