International Breweries Plc (IBPLC), one of the world’s leading brewers, said it closed the 2022 financial year with a revenue of N218.7 billion against N182.3 billion recorded in the same period in 2021.
The company’s gross profit decreased to N43.7 billion compared to the N46.4 billion in 2022 recorded in the previous year.
IBPLC also posted a finance income that increased from N3.1 billion in 2021 to N5.2 billion in 2022. Its net financial cost accrued to N5.6 billion in 2022, representing a growth from N1.8 billion in 2021.
Speaking at the 46th annual general meeting of the company held in Lagos on Wednesday, Nnaemeka Achebe, chairman of the Board of Directors, said the company has continued to sustain its production volumes despite inflation.
Achebe said 2022 was a year that tested the global economy with multiple challenges and also a year of transformation for the business as it embarked on multiple initiatives to position the company for better returns.
On his part, Carlos Coutino, managing director of International Breweries Plc, said one of the challenges experienced within the year under review was the increase of excise duty from N40 per litre of excise to N75 per litre, even as he decried the plan to further increase to N100 in 2024.
According to him, there is a gloomy outlook for the business sector following a significant reduction in consumer disposable income.
He called on the government to put out a positive policy to mitigate the excessive increase and double taxation and to give the industry a three to six months moratorium to adjust to new policies.
Coutino, however, reiterated IBPLC’s commitment to delivering value, driving innovation, and contributing positively to the communities it operates.
David Tomlinson, finance director of International Breweries Plc, said IBPLC’s focus remains on setting the business on the path to profitability as it continues to invest in aggressive marketing and rigorous research that will consolidate its position as a leader in Nigeria’s brewery sector.
Boniface Okezie, national chairman of Progressive Shareholders of Nigeria, urged the government to remove double taxation to curb inflation.
“When inflation increases and people lose their jobs, the government does not provide jobs rather the private sector they are over-taxing provides jobs. We commend IBPLC for receiving over 15 awards despite the economic challenges showing the company prioritises quality and its consumers,” he added.
Bisi Bakare, the national coordinator of the Pragmatic Association of Nigeria, commended IBPLC for its consistent commitment to shareholder engagement.