International Breweries turns to profitability, reports 102% growth in half-year earnings

NIGERIA – International Breweries, Nigerian subsidiary of AB InBev, has printed impressive top and bottom-line performance in the first half of 2022, overturning the losses recorded in the past four years.

Notably, the brewing giant with over 500 brands posted a Profit Before Tax of N1.82 billion (US$4.16m), an impressive movement from the loss of N17.22 billion (US$39.38m) recorded in the comparable period of 2021.

The makers of Hero Lager reported a Profit After Tax of N336.20m (US$768,000) for the half year period ended 30 June 2022, a 102.2% upward push from the N13.88 billion (US$31.75m) loss it reported for the same period in 2021.

A further breakdown of the company’s half-year 2022 financial statement showed that International Breweries generated a sum of N111.4 billion (US$254.7m) as revenue, a stellar 36% increase compared to N81.96 billion (US$187.46m) recorded in the previous year.

In the same vein, gross profit rallied by over 137% to N36.6 billion (US$83.71m) from N15.4 billion (US$35.22m), while gross profit margin improved to 32.9% from 18.8%.

Also, a 1501.6% increase in its finance incomes ensured a strong performance for the period under review, reports Naira Metrics.

Meanwhile, its administrative expenses rose by 41.89% to N28.72 billion (US$65.69m), primarily due to the increase in cost of materials consumed and allocated to overheads, which went up from N48.87 billion (US$111.7m) in H1 2021 to N25.95 billion (US$59.35m) in H1 2022.

Despite the rise in inflationary pressure ravaging the cost of operations by most organizations, International Breweries was able to post positive returns in the review period, due to its remarkable cost-effective operations management, adopted by the organization.

Chairman of the Board, HRH Nnaemeka Achebe said, “AB InBev was recently recognized by Fortune Magazine as the Most Admired Beer Company in the World.

“This recognition and our 2021 performance reinforce our commitment in-country to leverage our world class processes thereby delivering consistent growth and eventual returns for all shareholders.”

Similarly, the Managing Director, International Breweries PLC, Hugo Rocha, expressed optimism that the company is strategically positioned to provide better service to its teeming consumers across the country and generate profitable revenue for its investors.

“The continued support of consumers who prefer quality products from our stables is reflected in the outstanding financial performance of the company.

“We remain committed to creating value and sustaining the confidence of our stakeholders which include our shareholders and our beloved consumers,” he said.

He also added that, “We started 2022 on a positive note and this is because of the growing consumer demand for our brands; robust revenue management; and volumes growth ahead of the industry.”

In the same vein, outgoing Finance Director, International Breweries Plc, Bruno Zambrano, said, “After aggressive marketing and incisive research focused on identifying our consumers’ wants and where they consume the products, today, we can comfortably say we’ve gained market share to become the No 2 in the Nigerian beer market.

“It is our dream to rise to the zenith of the market and from the continuous growth being achieved, we are optimistic that we are on our way to achieving that.”

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