International Breweries Plc has posted its unaudited results for 2023, with the company recording a pre-tax loss of N87.64 billion, marking a 226% decline from the N26.84 billion loss before tax posted in FY 2022.
The company recorded a 21% increase in turnover to N264.28 billion, from N218.65 billion in 2022. In Q4 2023, the company’s revenue of N80.50 billion marked a 38% year-on-year increase from the N52.22 billion posted in Q4 2022.
The company was a major victim of the Naira devaluation in 2023, as it recorded a net foreign exchange loss of N72.47 billion in 2023, representing a 437.6% decline from the N13.47 billion net FX loss recorded in 2022.
Key Highlights FY 2023 (FY 2022, % Change)
- Revenue: N264.28 billion (N218.65 billion, +21%)
- Cost of sales: N211.22 billion (N175.01 billion, +21%)
- Gross profit: N53.06 billion (N43.64 billion, +22%)
- Operating loss: -N68.24 billion (-N21.33 billion, -220%)
- Loss before tax: -N87.64 billion (-N27.84 billion, -226%)
- Loss for the period: -N59.47 billion (-N21.63 billion, -174%)
- Other comprehensive income: N66.71 billion (N3.30 billion, +1919%)
- Total comprehensive income for the period: N7.25 billion (-N18.32 billion, +140%)
- Total assets: N733.11 billion (N484.25 billion, +51%)
What you should know
The interest expense on the company’s borrowings increased to N24.75 billion in FY 2023, representing a 247% increase from the N7.14 billion interest expense on borrowings in FY 2022.
For the company’s outstanding loan balance of $389.08 million with Citi Bank, the company using non-deliverable forward contracts to reduce the risk of exchange rate fluctuations on the interest and principal payments.