By Merit Ibe
International Breweries Plc, part of AB InBev, reported gross profit of N46.3 billion for 2021, which was up 51.9% from its profit in 2020, amid challenging inflation.
The statement, which was made during the society’s 45th Annual General Meeting in Lagos. The AGM presented a platform for the company and its shareholders to take a critical look at its performance in 2021.
According to the company, which is the world’s largest brewer with more than 500 brands, gross profit, reported at the 45th annual general meeting, was achieved based on results of volume growth and improved margins. of +300 basis points compared to the previous year.
At the end of the period, International Breweries reported 8.8 billion naira as additional profit for 2021. This result reduced the loss before tax (LBT) to 19.8 billion naira in 2021, representing a 30.6% decrease in loss.
International Breweries continues to post impressive results following the COVID-19 pandemic. The company recorded a remarkable increase in revenue in 2021 compared to revenue generated in the previous year. As of the end of the 2021 financial year, revenue of N182.3 billion was generated, representing an increase of 33.3% compared to the same period of 2020.
The company continued this positive trajectory during the first half of 2022. In terms of profitability, gross profit increased by 137% while gross margins increased by +1400 basis points. In absolute terms, it is important to emphasize that profitability was achieved over the period.
A turnaround for the first half of 2022 delivered positive operating profit by generating absolute growth of 13.6 billion naira compared to the first half of the previous year, amid headwinds related to costs linked to the operating environment. This result is an optimistic directional trend towards positive future results and a profit before tax (PBT) of 1.8 billion naira is a sign of it.
In his address, Chairman of the Board, Nnaemeka Achebe, said: “Despite the challenges faced, our production volumes continue to increase throughout the year. We are very proud of our strong recovery and are reporting historic total volume growth ahead of the industry, with total revenue of N182.3 billion, 33.3% higher than the previous year.
He said: “AB InBev was recently recognized by Fortune magazine as the world’s most admired beer company. This recognition and our performance in 2021 reinforces our commitment in-country to leveraging our world-class processes, delivering consistent growth and eventual returns for all shareholders.
Speaking on the company’s significant revenue and profit growth for shareholders, IBPLC Managing Director Hugo Rocha expressed his optimism that the company is strategically positioned to provide better service to its many consumers. across the country and generate profitable income for its investors.
According to Rocha, “The continued support of consumers who prefer quality products from our stables is reflected in the company’s outstanding financial performance. We remain committed to creating value and maintaining the trust of our stakeholders, including our shareholders and our beloved consumers.
He continued: “We have started 2022 on a positive note and this is due to growing consumer demand for our brands; strong revenue management; and volume growth ahead of the industry.
Outgoing Chief Financial Officer of International Breweries Plc, Bruno Zambrano, said: “IBPLC has undergone a transformation over the past two years. Our main objective was to grow the business back to profitability. After aggressive marketing and incisive research focused on identifying our consumers’ desires and where they consume the products, we can now say that we have gained market share to become the No. the Nigerian beer market.
“It is our dream to reach the zenith of the market and with the continued growth achieved, we are optimistic that we are on the right track to achieve this,” he added.
A shareholder, William Adebayo, praised the board and management of IBPLC saying that the aggressive marketing carried out by the company has seen the company’s products in high demand. An Abuja-based shareholder, Augustine Ezechukwu, also noted that IBPLC’s products are increasingly in demand in the capital.
International Breweries was established in December 1971 and listed on the Nigerian Stock Exchange in 1995. The company, AB InBev, consolidated its business interests in Pabod Breweries Limited, Intafact Beverages Limited and International Breweries Plc’s controlling interest in the part of a merger that was completed 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 also offers non-alcoholic malt beverages: Beta Malt and Grand Malt.