International Breweries posts 32.1% growth in third quarter

International Breweries PLC (IBPLC), makers of Trophy, Budweiser, and Hero premium lagers, has announced revenue growth of 32.1 percent in the third quarter of 2021, according to an unaudited financial report published on the website of the Nigerian Exchange Group (NGX).

The report stated that IBPLC’s revenue grew by 32.1 percent from N35.15 billion recorded in the corresponding period of 2020 to N46.43 billion in quarter three of 2021.

The company also posted a profit after tax of N367.5 million in the period under review while the cost of sales also increased by 16 percent to N33.86 billion, thereby yielding a gross profit of N12.57 billion in quarter three 2021, a significant jump from N5.96 billion recorded in 2020.

Similarly, the gross profit margin moved upward from 16.9 percent recorded in quarter three of 2020 to 27.1 percent in the review period.

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According to the company, the revenue growth justifies its massive consumer preference in the market while the impressive growth is linked to the consistent effort in product quality, leading to an upward spike in demand for its brands.

BusinessDay understands that the company’s bottom-line continues to be impacted by anticipated cost headwinds related to the operating environment – forex scarcity, devaluation, commodity prices, and inflation, Covid-19, yet the brands have continued to explore mitigating strategies to drive profit.

Also, IBPLC has continued to grow beer volumes and take more market share even as its premium brands continue to gain unprecedented acceptance and loyalty from consumers.

It is expected that the business will return more value to shareholders in no distant time if this current growth is sustained.

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