International Breweries Plc has announced its unaudited financial results for the period ended June 30, 2024.
The report reveals significant financial challenges, with a pronounced increase in losses compared to the same period in 2023.
Revenue and Gross Profit
The company reported a revenue of NGN 223.2 billion for the first half of 2024, nearly doubling the NGN 116.1 billion reported in the corresponding period of 2023.
Despite this revenue growth, the cost of sales also saw a sharp increase from NGN 78.7 billion to NGN 160.6 billion, resulting in a gross profit of NGN 62.6 billion, up from NGN 37.5 billion the previous year.
Operating Losses and Expenses
However, the company’s financial health was heavily impacted by other income losses and increased expenses.
The report indicates a stark rise in other income/losses, escalating from a negative NGN 35.9 billion in 2023 to a staggering negative NGN 134.0 billion in 2024.
Also, administrative, marketing, and distribution expenses rose to NGN 48.2 billion from NGN 36.1 billion.
The company also reported a net impairment charge on financial assets of NGN 16.7 million, a slight improvement from the NGN 156.0 million impairment in the prior period.
Finance Costs and Pre-Tax Losses
Finance costs also surged significantly, from NGN 6.7 billion in 2023 to NGN 30.7 billion in 2024, reflecting higher borrowing costs or increased debt levels.
Consequently, the loss before tax for the period ballooned to NGN 150.2 billion, a sharp rise from the NGN 41.4 billion loss reported in the first half of 2023.
Income Tax Credit and Net Loss
The company’s financial statement showed an income tax credit of NGN 43.5 billion, up from NGN 17.8 billion in the previous year.
Despite this, the net loss for the period was NGN 106.8 billion, compared to a net loss of NGN 23.6 billion in the same period last year.
Comprehensive Income
Total comprehensive loss for the first six months of 2024 was NGN 175.9 billion, compared to a comprehensive loss of NGN 47.9 billion in the first half of 2023.
This includes other comprehensive income/loss, net of tax, which was a negative NGN 69.1 billion in 2024, compared to a negative NGN 24.3 billion in the previous year.
Earnings Per Share
The basic and diluted earnings per share were reported as a loss of 398 kobo, a significant decline from the loss of 79 kobo reported in the first half of 2023. The gross margin also decreased to 28% from 32%.
Company Statement
Marian Reginald-Ukwuoma, Company Secretary and Legal Counsel, issued the report on behalf of the Board of Directors, highlighting the challenging financial climate the company is navigating.
These unaudited results paint a sobering picture of International Breweries Plc’s financial status for the first half of 2024.
The company will need to address these substantial losses and develop strategies to mitigate the financial challenges it faces moving forward.
