International Breweries Plc, the Nigerian subsidiary of global brewing giant- Ab Inbev, on Monday published its unaudited financials for the first quarter ended March 31, 2025, with bottom-line turning green on the back of a significantly drop in realised net foreign exchange loss in the period, as well as the net foreign exchange gain unrealised up from the unrealised loss of last year, supported by the robust reduction in finance cost, giving shareholders hope for a bountiful year-end if the tempo is sustained.
These lifted profit after tax to N29.37bn from the previous first quarter’s net loss of N60.391bn, which was significantly higher than revenue growth of 68.21%
Specifically, sales revenue for the period rose by N70.411bn to N173.627bn from the N103.215bn reported in the first three months of 2024. Cost of sales amounted to N141.488bn from N96.229bn, driven mainly by the N98.233bn spent on materials consumed and allocated overheads, rising from N62.569bn; followed by the N15.288bn on depreciation and amortisation, compared to the previous N13.822bn; and business running costs which rose from N13.522bn to N15.209bn. These left gross profit at N59.628bn from N28.854bn.
Administrative, marketing and distribution expenses grew from N21.868bn to N27.489bn; other expense dropped to N581.455m from N87.579bn; bringing the total to N31.534bn; against N80.578bn in the similar period of last year.
Sundry expense was N48.107m, against the N4.791bn reported in the comparative period of last year; net foreign exchange loss- realised fell to N3.586bn from N23.92bn; just as net foreign exchange gain unrealised amounted to N3.113bn, compared to the previous realised loss of N63.516bn.
Finance income jumped from N859.791m to N5.488bn; with interest expense dropping from N8.311bn to N381.874m in what may be a drop in bank loans and overdraft facilities; even as interest expense on lease liabilities stayed flat at N1.574bn, which was higher than the previous N1.324bn. Net finance cost, therefore amounted to positive N3.532bn from the previous N8.775bn loss.
Profit before tax stood at N35.066bn, as against the N89.354bn loss in 2024.
Income tax expense for the period stood at N5.69bn, compared to the previous tax credit of N28.962bn; following which net profit translated to 30 kobo earnings per share from the previous 62 kobo loss per share.
