Lagos, Nigeria – September 24, 2024 – Obi Nnaemeka Achebe, Chairman of the Board of Directors of International Breweries Plc, has announced that the repayment of the company’s foreign exchange-denominated loans will pave the way for a return to sustainable profitability.
In a statement released on Monday, Achebe highlighted the firm’s recent progress, particularly following a successful rights issue that enabled the repayment of these loans, which had adversely affected the company’s financial health for years. “The elimination of our FX exposure will improve IBPLC’s cash flows and support the company’s return to profitability,” he stated.
The rights issue, which opened on May 21 and closed on June 10, involved the offering of 161,172,395,100 shares and generated N581.7 billion. Shareholders were given the opportunity to subscribe to six new shares for every one held, priced at N3.65 per share, with core shareholder Anheuser-Busch InBev fully participating, showcasing their commitment to the Nigerian market and economy.
Achebe noted, “This recapitalization not only strengthens our balance sheet but also sets the stage for long-term profitability and growth. We are now better equipped to drive innovation, improve operational efficiency, and seize new opportunities.”
International Breweries, known for popular beverage brands such as Trophy, Hero, Budweiser, and Castle Lite, reported a 19.2% increase in revenue, rising to N260.6 billion in 2023 from N218.7 billion in 2022. Gross profit climbed by 17.3% to N86.3 billion, although finance costs surged by 178% from N10.6 billion in 2022 to N29.7 billion in 2023 due to FX losses resulting from currency devaluation and higher borrowing costs.
Despite facing challenges from inflation and forex losses, Managing Director Carlos Coutino reaffirmed the company’s commitment to innovation and customer satisfaction. “We will continue to manage our costs tightly through our different cost management strategies as we remain focused on delivering value to our customers,” he said.
Coutino emphasized that the company’s dedication to excellence is reflected in ongoing investments in new products, strategic partnerships, and advanced facilities, all of which are essential drivers of growth.
Shareholders expressed optimism regarding the brewer’s future, particularly following the repayment of its foreign loan, which is expected to allow the company to retain a larger share of its earnings for future growth initiatives. Finance Director David Tomlinson reiterated the focus on long-term growth, stating, “Our successful rights issue—Nigeria’s largest—allowed us to reduce more than 70% of our foreign exchange obligations, strengthening our capital structure and providing flexibility to explore growth opportunities with reduced risk.”
