International Breweries printed impressive top and bottom line 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, an impressive movement from the loss of N17.22 billion recorded in the comparable period of 2021.
A further breakdown of the company’s half-year 2022 financial statement showed that International Breweries generated a sum of N111.4 billion as revenue, a stellar 36% increase compared to N81.96 billion recorded in the previous year.
In the same vein, gross profit rallied by over 137% to N36.6 billion from N15.4 billion (H1 2021), while gross profit margin improved to 32.9% from 18.8% and 15.7% recorded in H1 2021 and H1 2020 respectively, while gross profit margin improved to 32.9% in the same period from 18.8%.
A cursory look at the data, showed that the gross profit margin recorded in the first half of the year was the highest recorded in the past four years. Also, a 1501.6% increase in its finance incomes ensured a strong performance for the period under review.
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The company consolidated on the positives recorded in the previous year, with aggressive marketing strategies which shore up revenue due to increased sales. International Breweries, manufacturers of Trophy Lager, Trophy Extra Special Stout, Budweiser, amongst other top brands recorded a 33.3% revenue growth in 2021, despite macro-economic headwinds.
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.
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It is worth noting, that improved advertisement costs also aided the increase in sales revenue recorded by the company. Specifically, the brewing giant spent N28.72 billion on administrative, marketing, and promotion in the first six months, against N20.24 billion in H1 2021 and N15.97 billion in H1 2020.
What they are saying
During the company’s 45th Annual General Meeting held on Thursday. 11th August 2022 in Lagos, the Chairman of the Board, HRH Nnaemeka Achebe commended the improvement in the company’s production and sales volume.
“Notwithstanding the challenges experienced, our production volumes continue to increase for the full year. We are very proud of our strong recovery and are delivering historical total volume growth ahead of the industry, with a total revenue of N182.3 billion, that is, 33.3% higher than the prior year.”
“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,” he added.
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, “International Breweries experienced a transformation in the last two years. “Our main focus was to grow the business to return to profitability. 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,” he added.