Year ends with loss for Int’l Breweries

beer

International Breweries Plc posted yet another loss for the last quarter of the year.

The brewing company which is a subsidiary of Anheuser-Busch InBev (AB InBev) posted a net loss of N9.2bn in Q4 2019, bringing its total losses for the year to N27.9bn. In the same period in 2018, the company’s total loss was N4bn.

The company blamed its losses on rising costs, the new excise duty on alcohol as well as stiff competition in the brewing industry.

According to the company, sales declined by 6% in the quarter to N35bn from N37.2bn

Administrative expenses jumped 125% to N8.3bn, while marketing & promotional expenses rose by 44% to N6bn.

Net finance cost grew by 33% to N9.2bn, adding to the company’s woes.

International Breweries announced in September it would initiate a rights issue to pare down mountain debt, with the objective to replace long-term debt with equity, thereby easing the burden of interest payments, increasing management’s flexibility as well as removing volatility in earnings.

International Breweries’ brands include Hero Lager, Trophy Lager, Beta Malt, Grand Malt and Budweiser amongst others.

Updated April 3, 2020

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