International Breweries records full Year loss of N3.8bn in 2018


International Breweries Plc, the Nigerian unit of Belgian brewer Anheuser-Busch InBev on Monday announced a loss of N3.8bn for the 12 months through December 2018. This is despite recording strong revenue growth of 230% to N120.6bn. The growth was fueled by the launch of its new brewery in Sagamu, Ogun State as well as a strong marketing push by the company.

The company said that higher cost of sales, a rise in finance cost, in addition to foreign exchange loss were partly to blame for the full year loss. Cost of sales grew by 221% N73.2bn, while Interest expense on borrowings rose by 303% to N15.9bn, from N3.9bn in the previous year, and foreign exchange loss climbed by 29% to N3.1bn.

Administrative and Marketing expenses also skyrocketed to N15.8bn and N20.9bn respectively, an increase of 360% and 244%.

International Breweries has been ramping up its capacity in the country as demand for its products increase. The increased capacity has come at a cost. In a May media briefing, the global CEO of AB InBev, Carlos Brito, while responding to reporters’ questions in Johannesburg, South Africa said that its capacity expansion in the new Sagamu brewery is likely to reach $400m, from $250m.

He added that capacity was being expanded in phases, but did not provide a timeline for the next phase.

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