International Breweries posts N6.84bn loss in six months

International Breweries Plc has posted a loss after tax of N6.84bn for the six months period ended June 30, 2019.

An analysis of the company’s financial statement, which was made available to the Nigerian Stock Exchange, showed that in comparison with its performance last year, International Breweries reported revenue of N68.63bn, an increase of 29.22 per cent from N53.11bn in 2018.

However, the company’s cost of sales increased by 41.12 per cent from N32.20bn in 2018 to N45.44bn in 2019.

The company also recorded a N658.70m loss on impairment of financial assets during the period under review.

An impairment of N115,313 was also recorded on computer software.

Marketing, promotional and other administrative expenses pushed the company’s loss before tax to N10.53bn for the first half of 2019 from N5.24bn recorded in 2018.

Further analysis of the financial statement revealed a loss of N11.71m on disposal of some of the company’s assets.

International Breweries increased the pay of its workers by 40.05 per cent within a year as the total salaries, wages and other benefits to workers increased from N4.02bn in 2018 to N5.63bn in 2019.

Another N87.23m was spent on staff training and recruitment in the first half of the year.

The company’s borrowings increased to N72.53m from N63.44m in the corresponding period of 2018.

The borrowings comprised of N28m bank overdraft and N44.54m term loans.

International Breweries said in its notes to the account that overdraft facilities from the various banks were all secured by corporate guarantee of the company.

It said interest on the bank overdraft was payable at rates ranging from 19.5 per cent to 23 per cent and that the interest rates on its loans ranged from 21 per cent to 23 per cent.

It added that the borrowings were for a period ranging from one year to three years.

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