International Breweries Plc, the Nigerian subsidiary of AB InBev has seen its losses widen in the first half of 2018 to N2.8bn, from N2.2bn in the first quarter.
The loss came despite a strong revenue boost of N53bn in the first half.
International Breweries has been expanding its product portfolio in the country with the launch of premium beer brand Budweiser in April and the marketing blitz that followed leading up and during the recent FIFA World Cup. The company also announced in November it was constructing a new brewery in Sagamu, soon to be completed at a cost of $250m, as it readies to take on entrenched competitors in the Nigerian beer market – Heineken controlled Nigerian Breweries and Guinness Nigeria majorly owned by Diageo Plc. All of the associated costs have weighed on the company’s earnings.
The comparative wide disparity in revenue growth from last year to the period under review is as a result of the merger of AB InBev’s three Nigerian subsidiaries into one. International Breweries Plc merged with its sister companies, Intafact Beverages Limited and Pabod Breweries Limited at the end last year.