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International Breweries posts loss for the third consecutive year

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International Breweries

International Breweries Plc has released its 2021 FY Audited Financial Statement, revealing a loss after tax of N17.66 billion from a loss of N16.06 billion in the corresponding period of 2020. Meanwhile, Revenue for the period raked in N182.30 billion, representing a growth of 33.27%.

This shows that the brewery has declared bottom line loss for three consecutive years since 2018, posting a loss of N3.93 billion. In 2019, the loss declared spiralled by an overwhelming 607% to N27.79 billion, to decline in 2020 to N16.08 billion. Within the three years, the company grew its revenue by over 51% on the back of inflationary pressures driven by increases in prices of goods and services over the years.

The back-to-back declaration of losses might suggest that the company lacks efficient cost management practices as the three audited period shows significant increase in Employee benefits expenses, Depreciation, and Amortization.

In the FY 2021 period ended December 2021, the third most-capitalized brewery recorded revenue growth on the back of the inflationary pressures during the period, which most Fast-moving consumer goods (FMCGs) benefitted from, especially during the festive season.

Key highlights of the report

  • International Breweries Plc generates its revenue from contracts with customers, which is distinguished between Key accounts and Distributors.
  • Revenue from Distributors made up 96.80% of the company’s total sales, appreciating by 31.32% from N134.38 billion to N176.46 billion. While revenue from Key accounts stood at N5.84 billion.
  • Other Income for the period was generated mainly through the sale of scraps, and Royalty received from Accra Breweries Ltd, which were both recorded as N22.16 million and N152.39 million, respectively.
  • Advertising and sales promotion expenses grew by 57.85% from N8.82 billion a year earlier to N13.92 billion suggesting that aggressive marketing and distribution was a contributor to the driver of sales.
  • Interest income on bank deposits was recorded as N3.01 billion, while net finance costs stood at N1.79 billion during the period.
  • Administrative expenses grew by 28.56% from the prior-year period, subduing bottom line performance for the period, recorded as N35.89 billion.
  • During the period, income tax credit declined by 82.57%, supporting bottom-line income.
  • The company’s total assets are now at N469.95 billion, net assets declined by 10.83% to N135.50 billion.

International Breweries Plc is currently trading at N4.40 per share and its market capitalization stands at N118.19 billion as at Thursday, March 31, 2021. Year-to-date performance shows that the share price of the company has lost 11.11%.

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Exchange rate falls at I&E window as FX supply drops

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Naira Vs Dollar e1539172078363 new

Monday, 23rd May 2022: The exchange rate between the naira and the US dollar closed at N420.33/$1 at the Investors and Exporters (I&E) window, where forex is traded officially.

Naira depreciated by 0.31% compared to N419.02/$1 recorded as of the close of trading activities on Friday, 20th May 2022. Also, a total of $72.25 million in FX exchanged hands in the market on Monday, representing a 55.9% decline compared to $170.58 million traded in the past session.

Naira traded lower against the US dollar in the early hours of Tuesday at N606.2/$1, representing a 0.36% depreciation compared to N604/$1 recorded on Monday morning. This is also the highest rate recorded in the past eight trading sessions.

Meanwhile, the exchange rate at the parallel market recorded a 0.17% marginal gain to close at N604/$1 on Monday, compared to N605/$1 recorded as of the end of trading on Friday, 20th May 2022.

Nigeria’s external reserves depreciated further by 0.11% on Friday to stand at $38.75 billion from $38.79 billion recorded as of the previous day. The decline in the external reserve level can be attributed to the continuous intervention by the Central Bank in the FX market in order to ensure the stability of the local currency.

Trading at the official NAFEX window

Naira resumed trading activities for the week on a negative note, as the exchange rate depreciated by 0.31% to close at N420.33/$1.

  • The opening indicative rate closed at N418.54/$1 on Monday, 23rd May 2022, 19 kobo depreciation compared to N418.35/$1 recorded on Friday, 20th May 2022.
  • Furthermore, an exchange rate of N444/$1 was the highest rate recorded during intra-day trading before it settled at N420.33/$1, while it sold for as low as N413/$1 during intra-day trading.
  • A total of $75.25 million exchanged hands on Monday, representing a 55.89% decline compared to $170.58 million traded on Friday, last week.

Crypto market update

The crypto market closed bearish on Monday, as the industry lost 2.05% in market capitalization to stand at $1.25 trillion as of 22:46 (WAT). Flagship crypto asset, bitcoin recorded a 3% decline to trade at $29,357.44.

Similarly, Ethereum recorded a 2.2% price decline to trade at $1,996.03, while Solana at $50.445 recorded a 3.78% decline.

However, despite the downturn recorded in the previous trading session, the market started on a positive note on Tuesday, with a 0.61% industry capitalization growth as bitcoin already gained 0.68% in the early hours of Tuesday morning.

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Business News

Exchange rate falls at I&E window as FX supply drops

Published

on

1653384005 589 Naira Vs Dollar e1539172078363 new

Monday, 23rd May 2022: The exchange rate between the naira and the US dollar closed at N420.33/$1 at the Investors and Exporters (I&E) window, where forex is traded officially.

Naira depreciated by 0.31% compared to N419.02/$1 recorded as of the close of trading activities on Friday, 20th May 2022. Also, a total of $72.25 million in FX exchanged hands in the market on Monday, representing a 55.9% decline compared to $170.58 million traded in the past session.

Naira traded lower against the US dollar in the early hours of Tuesday at N606.2/$1, representing a 0.36% depreciation compared to N604/$1 recorded on Monday morning. This is also the highest rate recorded in the past eight trading sessions.

Meanwhile, the exchange rate at the parallel market recorded a 0.17% marginal gain to close at N604/$1 on Monday, compared to N605/$1 recorded as of the end of trading on Friday, 20th May 2022.

Nigeria’s external reserves depreciated further by 0.11% on Friday to stand at $38.75 billion from $38.79 billion recorded as of the previous day. The decline in the external reserve level can be attributed to the continuous intervention by the Central Bank in the FX market in order to ensure the stability of the local currency.

Trading at the official NAFEX window

Naira resumed trading activities for the week on a negative note, as the exchange rate depreciated by 0.31% to close at N420.33/$1.

  • The opening indicative rate closed at N418.54/$1 on Monday, 23rd May 2022, 19 kobo depreciation compared to N418.35/$1 recorded on Friday, 20th May 2022.
  • Furthermore, an exchange rate of N444/$1 was the highest rate recorded during intra-day trading before it settled at N420.33/$1, while it sold for as low as N413/$1 during intra-day trading.
  • A total of $75.25 million exchanged hands on Monday, representing a 55.89% decline compared to $170.58 million traded on Friday, last week.

Crypto market update

The crypto market closed bearish on Monday, as the industry lost 2.05% in market capitalization to stand at $1.25 trillion as of 22:46 (WAT). Flagship crypto asset, bitcoin recorded a 3% decline to trade at $29,357.44.

Similarly, Ethereum recorded a 2.2% price decline to trade at $1,996.03, while Solana at $50.445 recorded a 3.78% decline.

However, despite the downturn recorded in the previous trading session, the market started on a positive note on Tuesday, with a 0.61% industry capitalization growth as bitcoin already gained 0.68% in the early hours of Tuesday morning.

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