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International Breweries’ three-month loss widens to N60bn

International Breweries’ three-month loss widens to N60bn

International Breweries, an alcoholic beverage maker in Nigeria, reported an after-tax loss of N60.4 billion in the first quarter of this year, up from N2.31 billion in the same period of 2023, according to its latest financial statement.

BusinessDay analysis shows that the firm’s revenue from contracts with customers surged to N103.2 billion from N54.4 billion while the cost of sales grew to N74.4 billion from N37.4 billion.

Administrative, marketing, and distribution expenses jumped to N21.9 billion from N17.3 billion while other expenses soared to N87.6 billion from N2.57 billion during the period reviewed.

Net finance cost grew to N8.78 billion from N1.14 billion.

Finance income dropped to N859.8 million from N3.43 billion while finance cost surged to N9.64 billion from N4.58 billion.

The manufacturer’s net cash inflow from operating activities stood at a negative N1.02 billion from a negative N29.5 billion.

Net cash outflow from investing activities arrived at a negative N8.72 billion from a positive N4.74 billion. Net cash outflow from financing activities stood at a negative N76.6 billion from a positive of N18 billion.

Cash and cash equivalents at the end of the period grew to N46.02 billion from N29.3 billion.

The shareholders of International Breweries recently approved a loan of $379.9 million from its majority shareholder, AB InBev Nigeria Holdings BV, to enable the company to repay a loan obtained from Citibank Abu Dhabi.

At the firm’s recently held Extraordinary General Meeting, the shareholders also approved the conversion of the loan to equity in the planned rights issue of the brewer, which is one of the largest breweries in the world.’

The resolution which was sent to the Nigerian Exchange Group stated that “Approval of Shareholders Loan: That the convertible loan of $379.9 million from AB InBev Nigeria Holdings BV (‘Shareholder Loan’) in respect of the repayment of the loan obtained by the company from Citibank Abu Dhabi is hereby accepted and approved by the terms and conditions presented by the management of the company.”

“Conversion of the loan to equity: Subject to complying with applicable regulatory requirements, the directors are authorised to apply all sums due from the company to AB InBev Nigeria Holdings BV under the shareholders loan, towards payment for any shares subscribed for by AB InBev Nigeria Holdings BV in the company’s Right Issue that has been approved by the Shareholders of the Company.”

The shareholders of International Breweries approved the company’s planned rights issue, according to a corporate notice filed with the Nigerian Exchange Limited. The approval was given at the last Extraordinary General Meeting of the company held in Lagos.

In January, the board of directors of International Breweries said it was considering a rights issue as well as an increase in its share capital.

The issued share capital of the brewer stood at 26,862,069,000 ordinary shares of 50 kobo each as of the end of December 2023.