International Breweries posts US$73.57M loss in 2024 despite record revenue growth
The AB InBev subsidiary records its seventh consecutive annual loss, citing foreign exchange challenges despite an 87.63% revenue surge.
NIGERIA – International Breweries, a subsidiary of AB InBev, has reported a loss after tax of N113.61 billion (US$73.97M) for the 2024 financial year, marking its seventh consecutive year in deficit.
According to the company’s audited financial results filed with the Nigerian Exchange Limited, this represents a 62.25% increase from its N70.03 billion (US$45.59M) loss in 2023.
Since first reporting a loss of N3.87 billion (US$2.5M) in 2018, the company’s financial struggles have persisted, with losses reaching N27.79 billion (US$18.1M) in 2019, N16.08 billion (US$10.5M) in 2020, N17.66 billion (US$11.5M) in 2021, and N21.63 billion (US$14.1M) in 2022.
Despite its continued losses, International Breweries posted record revenue of N488.96 billion (US$318.3M) in 2024, an 87.63% increase from N260.59 billion (US$169.7M) in 2023.
This marks the highest revenue the company has recorded in nearly a decade, signaling strong sales growth.
In its financial report, the brewer attributed its ongoing losses to foreign exchange market challenges.
“While continually delivering strong revenue growth, our inability to source adequate foreign exchange due to market illiquidity impacted profitability, as we incurred significant FX losses on our foreign currency-denominated debt and liabilities,” the company stated.
To address these issues, International Breweries launched a N588 billion (US$382.8M) rights issue in May 2024, offering 161,172,395,100 new ordinary shares at N3.65 per share.
Initially reserved for existing shareholders, the offering was later expanded to allow non-shareholders to participate.
According to the company, proceeds from the rights issue were used to settle outstanding U.S. dollar-denominated loans and provide working capital support.
“Going into 2025, the company expects to return to profitability in the absence of any significant non-operating foreign currency exposure,” it stated.
Despite financial setbacks, International Breweries reported a rise in operating cash flows to N148.90 billion (US$96.9M) in 2024, up from N78.60 billion (US$51.17M) in 2023. The company emphasized that it remains strategically positioned for future growth with continued support from its parent company, AB InBev.
“We are committed to creating sustainable value for our shareholders while fortifying our position in the Nigerian beverage industry. Together, we will continue to brew success, deliver long-term value for our shareholders, and create a future with more cheers,” said David Tomlinson, Finance Director of International Breweries.
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