International Breweries has recorded another year of losses, marking its seventh consecutive year in the red. The company’s audited financial report, filed on the Nigerian Exchange Limited on Thursday, showed that the brewer’s loss after tax surged to N113.61bn in 2024, up from N70.03bn in 2023. This represents a sharp 62.25 per cent increase in losses, raising concerns among investors and industry experts.
Since 2018, International Breweries has been struggling with financial losses. That year, it recorded a loss of N3.87bn, which later ballooned to N27.79bn in 2019. By 2020, the losses dropped to N16.08bn but began rising again to N17.66bn in 2021 and N21.63bn in 2022. Despite these setbacks, the company achieved a major revenue milestone in 2024, reaching N488.96bn, the highest in nine years. This figure reflects an 87.63 per cent increase compared to N260.59bn in 2023, showing strong sales growth despite financial difficulties.
The company has pointed to several factors contributing to its struggles. In its annual report, International Breweries explained that while revenue continues to grow, its ability to access foreign exchange remains a major challenge. The firm cited market illiquidity as a key reason for its FX-related losses, which affected profitability due to its foreign currency-denominated debts and liabilities. Analysts have noted that the fluctuation in the Nigerian naira has further complicated financial stability for businesses reliant on foreign transactions.
To address this, the company launched a rights issue and raised fresh capital to settle its outstanding debts. Looking ahead to 2025, International Breweries expects to turn things around if there are no significant foreign exchange losses. The brewer also reported positive operating cash flows in 2024, generating N148.90bn, a notable increase from N78.60bn in 2023. This, according to the company, will help it meet short-term financial obligations. The management remains optimistic about the future and assured shareholders that it continues to enjoy support from its parent company, AB InBev.
In May 2024, International Breweries initiated a N588bn rights issue, offering 161,172,395,100 new ordinary shares at N3.65 per share. The terms allowed existing shareholders to receive six new ordinary shares for each share they already owned. Initially, the rights issue was limited to current shareholders, but the company later expanded it to include non-shareholders, making the offering more inclusive and attracting a wider pool of investors.
As a subsidiary of Anheuser-Busch InBev (AB InBev), the world’s largest brewing company, International Breweries remains a major player in Nigeria’s beverage market. AB InBev had previously acquired SABMiller in 2016, absorbing its Nigerian subsidiaries, including Intafact Beverages Limited in Onitsha, International Breweries Plc in Ilesha, and Pabod Breweries Limited in Port Harcourt. These breweries were later merged into one under the International Breweries name in 2017, with AB InBev holding a majority stake.
As of December 2024, AB InBev Nigeria Holdings BV holds 96.1 per cent of International Breweries’ shares, amounting to 161,580,471,272 shares. Despite ongoing financial hurdles, the Finance Director of International Breweries, David Tomlinson, reassured stakeholders that the company remains committed to creating sustainable value. He stated that the goal is to strengthen the company’s position in the Nigerian beverage industry, ensuring long-term success for shareholders. Industry experts will be closely watching the company’s financial strategies in 2025 to see if it can finally return to profitability.
