International Breweries Plc records loss of US$10.49m despite 230% growth in revenue

Must Read

Cancer Surgeries, Chemotherapy Now Covered By NHIS

The Executive Secretary, National Health Insurance Scheme (NHIS), Prof Mohammed Sambo had stated some levels of cancer surgeries and...

PZ Cussons commences entries for Cussons Baby Moments’ 6th season

PZ Cussons has announced the commencement of entries of the 6th season of its eponymous baby competition in Nigeria tagged...

Ankara Styles For Slim Ladies: Top 5 Looks You Must Try! (Pictures)

Today’s fashion of Nigeria shows off plenty of Ankara styles for slim ladies, that will help them to create a...
- Advertisement -
- Advertisement -

International Breweries Plc, the Nigerian unit of Belgian brewer Anheuser-Busch InBev recorded a net loss of US$10.49 million (N3.8bn) for the year ended December 2018 despite strong revenue growth of 230% to US$332.97m (N120.6bn).

The company said that the growth was driven by the launch of its new brewery in Sagamu, Ogun State as well as a strong marketing push by the company.

However, a rise in finance cost coupled with a 29% increase in foreign exchange loss and 303% increase in interest expense on borrowings was partly to blame for the full-year loss.

During the period under review, administrative expenses also increased 360% to US$43.62 million (N15.8bn) while marketing expenses also climbed up 244% to US$57.7 million (N20.9bn).

The beverage company manufactures and distributes alcoholic and soft beverages in Nigeria under the  Brands; Trophy Lager, Trophy Black, Castle Milk Stout, Castle Lager, Redds, Hero, Grand Malt, Betamalt, and Voltic Water.

Read:  Nigeria Stock Market Bears A Net Loss Of N369 Billion In 5 Days

The Nigeria Stock Exchange-listed firm has been ramping up its capacity in the country as demand for its products increase.

The company has also been consolidating its holdings in the country to take on Nigerian Breweries Plc and Guinness Nigeria plc who are working to garner a significant market share through innovations.

The company merged its three breweries in the country (Intafact Beverages Ltd, Pabod Breweries and Int’l Breweries) into one entity.

Read:  The Campaign For Road Safety Education And The Duty Of The Nigerian Youths.

Backed by the world’s largest beer maker, AB InBev, the company is expected to invest a total of US$400 million in the newly built Sagamu Brewery.

Speaking during a media briefing in South Africa, AB InBev’s chief executive officer, Carlos Brito, said that the investment is expected to improve the firm’s performance in the Nigerian market.

Read:  President Mohammadu Buhari, 5 Presidents, Business Leaders, Nominated For African Leadership Magazine Persons of the Year Awards 2017

Carlos highlighted that AB InBev sees further African investment, especially across the South African and Nigerian market.

The multi-million dollar investment by AB InBev seeks to consolidate its position ahead of its rivals, including Heineken NV, in the continent amid the rising household incomes and beer consumption across a population of about 1 billion people.

Demand in Africa was cited by AB InBev as a major factor in the decision to buy Johannesburg-based SAB Miller in 2016, a combination that brought together brands such as Budweiser and Stella Artois with SAB’s best sellers such as Castle lager.

- Advertisement -

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest News

Interesting Ways Your Smartphone Can Save You Money

There are so many ways you can use your favourite techy gadget to save you money. If you are...

Can You Create A Business Plan In 15 MinS?

If you were only allotted 15 minutes, would you be able to create a sustainable business proposal, ascertain its cost of running and factor...

MTN Nigeria Declares Close Period Ahead Of Q3 2019 Unaudited Financial Results

The Board of Directors of MTN Nigeria Communications Plc Plc has announced a board meeting. One of the top agendas of the meeting is for...

SOYINKA TO REVIEW KEITH RICHARDS’ BOOK

Nobel Laureate, Professor Wole Soyinka will be a special guest to review Chief Keith Richards’ latest book, “Never Quite the Insider: a Nigerian Memoir”...

More Articles Like This