Int’l Breweries Presents 2018 Financials, Swings Into Loss, Despite 230% Turnover Growth, Tax Credit

The board of International Breweries Plc, on Monday, presented its belated audited financials for the year ended December 31, 2018, with sales revenue soaring by N84.083bn or 230.19%, despite which the company slipped into a net loss, despite the tax rebate of N4.628bn.
With this and a total comprehensive loss of N3.842bn, the directors say they have resolved not to recommend the payment of a dividend for the period ended December 31, 2018, just as in the previous year-end. The board expressed a belief that the “decision is appropriate in the circumstance and in the future interest of the company owing to the current gearing ratio.”
Revenue from the sale of alcoholic and non-alcoholic beverages for the period, according to the result presented to the Nigerian Stock Exchange (NSE) rose to N120.61bn, from previous year’s N36.527bn.
Cost of sales however jumped by N50.45bn or 221.08% from N22.819bn in 2017 to N73.27bn, the bulk of which was the materials consumed and allocated overhead stood at N55.523bn from N19.034bn; followed by the N7.677bn cost of amortization of container, up from N1.46bn; among others. Gross profit, therefore, climbed to N47.34bn from N13.707bn, representing a 245.35% rise.
Administrative expenses also soared to N15.883bn from N3.446bn, with employee benefit expenses increased from N1.28bn to N4.588bn; followed by business running costs of N4.391bn, compared to the previous N536.113m; just as depreciation cost increased to N986.941m, from N4.295bn.
Marketing and promotion expenses jumped from N6.086bn in 2017 to N20.966bn, with transportation and distribution expenses scooping the lion’s share of N11.223bn, from N3.271bn; followed by advertising and promotion, which increased to N7.859bn from N1.918bn.
Net impairment charge on financial assets dropped to N236.392m from N1.13bn. Other income increased to N807.498m from N123.387m; following which other losses- net increased from N2.451bn to N3.166bn. Operating profit for the period improved to N7.896bn from N716.347m, representing a rise of 1,002.26%.
Finance income dropped to N84.265m from N532.971m; while finance cost soared by N11.54bn, or 257.56% to N16.029bn from N4.483bn in 2017. Net finance costs- net, therefore, stood at N15.945bn from N3.95bn.
Loss before tax, therefore, stood at N8.049bn, as against the N3.233bn in 2017; which dropped to N3.866bn, following the tax credit of N4.183bn. which slightly lower than the N4.628bn reported in the prior year. The loss per share, therefore, stood at 45 kobo, as against the profit of 16 kobo per share.