Nigeria: International Breweries’ loss after tax worsens in the first half of 2024

International Breweries’ loss after tax worsened by 352 per cent to N106.8bn in the first half of 2024, from the N23.6bn recorded in the same period last year, Punch Newspapers reported on July 30.

According to the company’s unaudited condensed financial statements for the period ended June 30, 2024, which was filed with the Nigeria Exchange Limited on Monday, the loss was on the back of higher costs of sales, administrative expenses, and finance costs.

However, the company experienced an increase in its revenue, surging by 92.19 per cent from N116.13bn in 2023 to N223.19bn, driven by higher sales volumes and improved market penetration.

The cost of sales rose by 104 per cent from N78.65bn in 2023 to N160.58bn in the first half of the year, due to increased raw material prices and higher operational expenses, the brewer said.

Administrative, marketing, and distribution expenses increased by 33 per cent, from N36.13bn in the previous year to N48.18bn in the first half of the year. The rise in these expenses was attributed to expanded marketing campaigns and increased distribution costs.

Other expenses soared by 274 per cent, jumping from N35.88bn in 2023 to N134bn in 2024. Net finance costs rose by 355 per cent, rising from N6.74bn in 2023 to N30.68bn in the first half of the year. The surge in finance costs was driven by increased interest expenses on the company’s borrowings and unfavourable exchange rate movements.

In the period under review, loss before tax expanded significantly by 263 per cent from N41.43bn in H1 2023 to N150.23bn.

Despite the losses, cash and cash equivalents saw an increase of 576 per cent to N185.6bn.

Operating cash outflow slightly decreased by three per cent, from N26.5bn in the first half of the prior year to N25.6bn.

In May, International Breweries, a member of AB InBev, raised N161.17bn in fresh capital through a rights issue.

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