International Breweries reports loss despite strong revenue boost in the first half

NIGERIA – International Breweries Plc, a subsidiary of the world’s largest brewer AB InBev has reported a loss of US$7.76m in the first half of 2018 from US$6.09mn in the first quarter.

Revenue grew to US$146.88mn and the quarter was marked by various product launches aimed at expanding its portfolio.

The brewer launched its premium brand, Budweiser into the Nigerian market with an agenda to compete in the segment dominated by Nigerian Breweries and Guinness Nigeria.

This was followed by a strong marketing campaign through its Trophy lager when it launched a campaign, #RaiseATrophy, aimed at supporting Nigeria’s national team at the 2018 FIFA World Cup in Russia.

During the period, Int’l Breweries invested US$250 million in a new brewery in Sagamu to be completed in the mid-year to take on competitors in the beer market, these are Heineken controlled Nigerian Breweries and Guinness Nigeria majorly owned by Diageo Plc.

The company said these initiatives in addition to other economic factors weighed down on the company earnings.

Also, wide gap in revenue growth compared to last year was attributed to the merger of AB InBev’s three Nigerian subsidiaries into one.

In December, the world’s largest brewer completed the merger of its Nigerian businesses, that is International Breweries Plc, Intafact Beverages Limited and Pabod Breweries Limited with the listing of the consolidation shares on the Nigerian Stock Exchange (NSE).

For the year ended 31 March 2017, revenue grew to US$90.65mn from US$64.46 million in 2016.

Revenue, Gross Profit and Operating Profit grew by about 40.6%, 41.6% and 57.3% respectively.

The company increased its focus on strategic planning in the year under review with sustained product expansion offerings to our consumers and cost management to support top line growth.

In its future outlook, the company said it was determined to capture new growth opportunities while maintaining a focus on the long-term growth prospects for business.

In June, the company announced reconstitution of its board of director allowing for representatives of the merged companies on the board of the new International Breweries.

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