Nigeria: International Breweries posts N113.1 bln loss in over 5 years

International Breweries Plc has failed to harness the vast opportunities in the brewery market and has serially declared loss in the last five years and six months, The Whistler NG reported on July 31.

The brewer has lost a cumulative of N113.1bn from 2018 to June 2023, analysis by The Whistler has revealed.

Based on its financial accounts for December 20217–June 2023, the last time the company declared profit was in December 2017 when they raked in N874.6 million from a revenue of N36.5bn.

IntBrew’s flagship products are Hero, Trophy, Budweiser, Beta Malt, and Grand.

The brewery company was founded in 1971 by Lawrence Omole with an installed capacity of 200,000 hectolitres per annum when it started production of Trophy Larger in seven years later.

Listed on the Nigerian Stock Exchange in 1995, the company expanded its capacity to 500,000 hectolitres annually.

IntBrew merged with SABMiller Plc in 2012 and entered an alliance with the Castel group. It further merged with Intafact Beverages Limited and Pabod Breweries Limited.

IntBrew was a profit-making venture prior to its downturn. In 2015 it made N1.94bn; 2014 N2.1bn. It made N2.32bn in 2013.

However, the company has seen a twist of fortune becoming a serial loser. In 2018, the company declared a loss after tax of N4.13bn and also lost N27.65bn in 2019.

IntBrew posted loss after tax of N18.5bn, N17.65bn, and N21.62bn in 2020,2021 and 2022 respectively.

The company further extended its loss to N23.59bn in half the year ending June 2023. In the first half of 2023, the company generated a revenue of N 116.13bn during the period.

The company is also drowned in debt of $278m (N211.3bn at N760/$) and another N57bn.

IntBrew books revealed a “balance of a loan amounting to $278m which was obtained in 2018 with a maturity date of May 2021 and was rolled over for an additional 3 years period. The company has entered into non-deliverable forward contracts to mitigate the forex risk on the contractual interest and principal repayments.

“There is also a loan (revolving credit facility) of N57 billion that has not been drawn down by the company as of the end of the reporting period.

“Interest rates on the Company’s loans range from 4 per cent to 13 per cent. The Company’s borrowings are within the period from one year to three years.”

The company’s liabilities are on the rise currently at N 525.9bn from NN366.9bn in 2022 while Total assets were N595.35bn as of June 2023.

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