International Breweries Plc, a part of AB InBev, has declared a gross profit of N46.3 billion for the 2021 financial year despite the challenging economic crisis.
The gross profit, according to the company, represents an increase of 51.9 percent when compared with the profit in 2020, and it attributed it to volume growth and an increase in gross margins of +300bp compared to the previous year.
The company also posted revenue generation of N182.3 billion, representing a 33.3 percent increase in the revenue for 2020.
Within the period, International Breweries brought in N8.8 billion as additional profit for 2021, reducing the loss before tax to N19.8 billion in 2021 representing a 30.6 percent decrease in loss.
In the first half of 2022, the company recorded gross profit growth of 137 percent and gross margins expansion of +1400bps. It delivered a positive operating profit by recording a growth of N13.6 billion more than the first half of 2021 amid cost headwinds relating to the operating environment.
It also reported a profit before tax of N1.8 billion in the first half of this year.
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Speaking at the 45th annual general meeting held recently in Lagos to take a look at its performance in 2021, Nnaemeka Achebe, chairman of the Board, said the company’s production volumes continued to increase for the full year despite the challenges experienced.
He said that Fortune Magazine recently recognised AB InBev as the ‘Most Admired Beer Company in the World, which helps to reinforce the company’s commitment to delivering growth and returns to shareholders.
Hugo Rocha, the managing director of IBPLC, expressed optimism that the company is strategically positioned to provide better service to its consumers and generate profitable revenue for its investors.
“The continued support of consumers who prefer quality products from our stables is reflected in the company’s outstanding financial performance. We remain committed to creating value and sustaining the confidence of our stakeholders,” Rocha said.
He however added that the company started 2022 on a positive note because of the growing consumer demand for its brands.
Bruno Zambrano, outgoing finance director, International Breweries Plc, said the IBPLC is focused on growing the business to return to profitability.
“After aggressive marketing and incisive research focused on identifying our consumers’ wants and where they consume our products, today, we can comfortably say we have gained market share to become the number two in the Nigerian beer market,” he added.
William Adebayo, a shareholder, commended the board and management of IBPLC, noting that the aggressive marketing carried out by the company has seen its products being massively demanded.
