International Breweries Plc, a leading beer manufacturer, has announced a pre-tax loss of N2.07 billion for the third quarter of 2023. Despite the loss, the company has shown significant growth in its revenue.
With a revenue of N67.65 billion in Q3 2023, International Breweries Plc has achieved a remarkable year-on-year growth of 38% compared to the same period in 2022.
This positive trend has also contributed to the company’s nine months’ earnings, which now stands at N183.78 billion, reflecting a 14.55% year-on-year growth from 2022.
Key financial highlights for Q3 2023 compared to Q3 2022 include an increase in revenue by 37.98% and a rise in gross profit by 41.34%.
Operating profit also saw a significant growth of 158.29%, while cash and cash equivalents increased by 12.23%. On the other hand, net finance costs experienced a notable increase of 500.48% year-on-year, contributing to the pre-tax loss.
Despite the loss, analysts have pointed out that the company’s performance in Q3 2023 is relatively positive compared to the corresponding quarter in 2022.
Furthermore, for the nine-month period ending on September 30, 2023, International Breweries Plc saw a considerable decline in pre-tax loss from N43.52 billion to N2.85 billion compared to the same period last year.
The loss in the nine-month period is primarily attributed to the increased finance costs, with interest expense on borrowings seeing a substantial 244% year-on-year surge.
International Breweries remains optimistic about its future growth potential, and with its strong revenue performance, it is expected to regain profitability in the upcoming quarters.