International Breweries reports 32.1% increase in revenue

International Breweries declares N43.7bn gross profit

International Breweries has reported 32.1 per cent increase in revenue to N46.43 billion in the third quarter (Q3) of 2021 from N35.15billion recorded in third quarter of 2020.

The company in its report to Nigerian Exchange Group (NGX) reported a profit after tax of N367.5 million in the review period, a major boost from the downturn recorded in the previous year.

International Breweries recorded a revenue boost of 32.1per cent in Q3 2021 from N35.15 billion recorded in the corresponding period of 2020 to N46.43 billion in the current period.

Cost of sales also increased by 16per cent to N33.86 billion, thereby yielding a gross profit of N12.57 billion in Q3 2021, a significant jump from N5.96 billion recorded in the previous year.

Similarly, the gross profit margin moved upward from 16.9per cent recorded in Q3 2020 to 27.1per cent in the review period.

Its earnings per share also moved towards positive territory from the loss recorded in the corresponding period of 2020 to N1 in Q3 2021.

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A cursory analysis of the statement of financial position shows that the total assets of the company increased by 8.3% in the past nine months. It grew from N372.65 billion recorded as of the end of last year to N403.46 billion as of September 2021.

In the same vein, inventories jumped significantly by 65.8per cent to N23.54 billion as of Q3 2021 from N14.19 billion recorded as of the end of last year.

Recall that, International Breweries printed negative returns in the previous year, largely attributed to the effect of the covid-19 pandemic and lockdown measures around the world, specifically Nigeria. The brewing company declared a loss of N1.52 billion in the third quarter of 2020.

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The positive movement in the company’s Q3 2021 result is an indication of recovery from the losses recorded in the previous year, as businesses continue to open and parties resuming across most areas in the country.

A further breakdown of the financials reveals that during the nine months period ended 30th September 2021, the company acquired plant, property and equipment with a total cost of N16.2 billion as against N12.1 billion in the corresponding 2020 period.

It is worth noting that gross and EBITDA margins went up by over 1000basis points and 240basis points respectively.

The company in a statement said its impressive growth is linked to the consistent effort in products quality, leading to an upward spike in demand for its brands.

According to the statement: “Consumers are driven by the performance of its portfolio and expansion of its route to market.

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“The Company’s bottom-line continues to be impacted by anticipated cost headwinds related to the operating environment – FX scarcity, devaluation, commodity prices, and inflation, COVID 19, yet the brand shave continued to explore mitigating strategies to drive profit.

“At a time when businesses are challenged, International Breweries is still growing its topline, International Breweries, is still growing its topline, recording massive consumer demand for its brands and remains resilient, despite the harsh operating environment coupled with the COVID-19 related restrictions.

“The company continues to grow beer volumes and take more market share. The Company’s premium brands continue to gain unprecedented acceptance and loyalty from consumers. Where this current growth is sustained,the business should return value to shareholders in no distant time.”


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