International Breweries Plc, a proud part of AB InBev, the world’s largest brewer with over 500 brands, held its 45th Annual General Meeting, on Thursday, August 11, in Lagos. The AGM presented a platform for the company and its shareholders to take a critical look at its performance in 2021.
International Breweries continued to post impressive results post Covid-19 pandemic. The company recorded a remarkable increase in revenue in 2021 when compared to the revenue generated in the previous year. Closing the financial year of 2021, a revenue of N182.3Billion was generated which represented a 33.3% increase to the same period of 2020.
Amidst challenging inflation, the gross profit for 2021 increased by 51.9% compared to its profit in 2020, reaching N46.3Billion. This gross profit was achieved based on volume growth results and increase in gross margins of +300 bp vs prior year. By the end of the period, International Breweries brought in N8.8Billion as additional profit for 2021. This result reduced the Loss Before Tax (LBT) to N19.8Billion in 2021 representing a 30.6% decrease in loss.
International Breweries has continued this positive trajectory during the first half of 2022. In terms of profitability, Gross Profit grew by 137% while Gross Margins expanded by +1400bps. In absolute terms, it is important to highlight that profitability has been achieved for the period. A turn around for 1H 2022 has delivered a positive operating profit by delivering an absolute growth of N13.6Billion above the first half of the previous year, amidst cost headwinds related to the operating environment. This result is an optimistic directional trend towards positive future results and a Profit Before Tax (PBT) of N1.8bn is a sign of it.
In his address, Chairman of the Board, HRH Nnaemeka Achebe said, “Notwithstanding the challenges experienced, our production volumes continue to increase for the full year. We are very proud of our strong recovery and are delivering historical total volume growth ahead of the industry, with a total revenue of N182.3bn, that is, 33.3% higher than the prior year.”
He concluded by stating that “AB InBev was recently recognized by Fortune Magazine as the Most Admired Beer Company in the World. This recognition and our 2021 performance reinforce our commitment in-country to leverage our world class processes thereby delivering consistent growth and eventual returns for all shareholders.”
Speaking on the significant revenue and profit growth of the company to shareholders, the Managing Director, IBPLC, Hugo Rocha, expressed optimism that the company is strategically positioned to provide better service to its teeming consumers across the country and generate profitable revenue for its investors.
According to Rocha, “The continued support of consumers who prefer quality products from our stables is reflected in the outstanding financial performance of the company. We remain committed to creating value and sustaining the confidence of our stakeholders which include our shareholders and our beloved consumers.”
He continued, “We started 2022 on a positive note and this is because of the growing consumer demand for our brands; robust revenue management; and volumes growth ahead of the industry.
Outgoing Finance Director, International Breweries Plc, Bruno Zambrano, said, “IBPLC experienced a transformation in the last two years. Our main focus was to grow the business to return to profitability. After aggressive marketing and incisive research focused on identifying our consumers’ wants and where they consume the products, today, we can comfortably say we’ve gained market share to become the No 2 in the Nigerian beer market.”
“It is our dream to rise to the zenith of the market and from the continuous growth being achieved, we are optimistic that we are on our way to achieving that,” he added.
A shareholder, William Adebayo, commended the board and management of IBPLC stating that the aggressive marketing carried out by the company has seen the company’s products being massively demanded. An Abuja-based shareholder, Augustine Ezechukwu, also noted that IBPLC’s products are in increased demand in the capital city.
International Breweries was established in December 1971 and was listed on The Nigerian Stock Exchange in 1995. The company, AB InBev, consolidated its business stakes in Pabod Breweries Limited, Intafact Beverages Limited and majority ownership of International Breweries Plc in a merger that was concluded in December 2017. Proud producers of Trophy Lager, Trophy Extra Special Stout, Hero Premium Lager, Budweiser Premium Lager, and other household beer brands, International Breweries is also home to non-alcoholic malt beverages—Beta Malt and Grand Malt.