International Breweries reports net loss of US$19m despite revenue growth

NIGERIAInternational Breweries (IB Plc), the Nigerian operating unit of Anheuser-Busch InBev has said it bagged a net loss of US$19.53 million (N7.1 billion) for the first nine months of 2018.

Revenue for the period grew 128% to US$228 million from US$100 million in the prior year.

The company pinned the underperformance on increased expenses and higher finance costs which rose 187% to US$25.31 million.

Administrative expenses grew 171% to US$52.27 million, from US$19.25 million in the previous year while operating profit plunged 33% to US$7.70 million from US$11.55 million in 2017.

IB has seen pressure on its business in market as competition from rivals grew.

It has been consolidating its holdings in the country as well as ramping up capacity 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.

Following the merger, the company decided that representatives of the merged Companies be reflected on the board of the new entity.

It restructured its board in June with the appointment of a new chairman and other key positions.

IB in recently commissioned a new US$250 million brewery in Sagamu in August said to be its second largest in Africa after one it owns in South Africa at a cost of US$250 million.

In the first half of the year 2018, the brewery reported a loss of US$7.76m from US$6.09m 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, Raise Atrophy, aimed at supporting Nigeria’s national team at the 2018 FIFA World Cup in Russia.

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