International Breweries Plc (“IB Plc”) said it rang-up a net loss of N7.1bn for the first nine months of 2018. This is despite seeing a revenue growth of 128% to N83bn in the period from N36.5bn in the prior year.
The Nigerian unit of Anheuser-Busch InBev said skyrocketing net finance cost was to blame as it rose 187% to N9.2bn.
IB has been consolidating its holdings in the country as well as ramping up capacity to take on rivals, Nigerian Breweries Plc and Guinness Nigeria plc. The company merged its three breweries in the country (Intafact Beverages Ltd, Pabod Breweries and Int’l Breweries) into one as it completed the construction of a fourth brewery in Sagamu in August, said to be its second largest in Africa after one it owns in South Africa at a cost of $250 million.
With the massive build-up to take on its entrenched rivals, costs have been severely stretched. Administrative expenses grew 171% to N19bn, from N7bn in the previous year. Operating Profit plunged 33% to N2.8bn from N4.2bn in 2017.
International Breweries launched premium beer brand Budweiser in Nigeria in April, which has grown strongly, according to AB InBev in its most recent Q3 results.