Challenging quarter due to industry contraction and supply chain constraints. Single-digit topline growth offset by elevated cost pressures.
International Breweries Plc, proud of AB InBev, the world’s largest brewer with over 500 beer brands has reported a revenue growth of 5.6% in the third quarter of 2022 despite a reduction in volume momentum following a strong first half of the year.
Speaking on the results, the company’s Managing Director, Hugo Rocha attributed the development to ongoing supply chain constraints and the impact of inflation on consumers’ disposable income in the last three months.
He states, “The last three months have been characterized by elevated inflationary pressure which has had an impact on consumers’ disposable income. The period experienced especially severe weather with a longer rainy season and floods in key markets. However, despite the difficult quarter, we remain focused on our winning commercial strategy. Year-to-date, our brands remain resilient and continue to deliver volume growth. We remain committed to returning to profitability and creating value for our stakeholders.”
Rocha also stated that International Breweries remained resilient during the period led by the company’s core brands, premium portfolio, and innovation. “As part of our “Beyond Beer” strategy, we launched Flying Fish during the quarter to address incremental occasions and consumer needs. This has been well received and continues to gain acceptance in the market,” he said.
Finance Director, Eduardo Caceres noted that the brewer’s top line grew by 5.6%, driven by its revenue management initiatives. Gross profit and margins declined on elevated costs largely due to higher energy prices, FX illiquidity, commodity costs headwinds, severe weather, and overall inflationary pressures, maintaining that the company remains EBITDA positive on the back of prudent resource allocation and cost management.
According to Caceres, “Year-to-date, top-line grew by double-digit and revenue management initiatives in the first half of the year. We continue to grow beer volume and gain share driven by our core and premium brands We remain positive about the industry’s outlook and remain confident in the future growth of our business and will continue to invest and strengthen our brand portfolio across all segments.”
International Breweries Plc will be holding a “Fact Behind The Figures” session with the Nigerian Exchange Group where it hopes to shed more light on the dynamics behind its third-quarter financial results.
Published on Brandfit.