In its recently released unaudited results for the fiscal year 2023, International Breweries Plc has reported a pre-tax loss of N87.64 billion. This loss represents a significant decline of 226% compared to the N26.84 billion loss before tax recorded in 2022.
Despite the loss, the company did see a positive development in its turnover, which increased by 21% to N264.28 billion, up from N218.65 billion in 2022.
The Fourth Quarter (Q4) report for the previous year also revealed encouraging figures for International Breweries Plc, with a revenue of N80.50 billion. This marked a substantial 38% year-on-year (YoY) increase compared to the N52.22 billion reported in Q4 2022.
However, the company faced challenges due to the devaluation of the Naira in 2023, resulting in a net Foreign Exchange (Forex) loss of N72.47 billion for the year. This loss represents a significant decline of 437.6% compared to the N13.47 billion net FX loss recorded in 2022.
Furthermore, the interest expense on the company’s borrowings rose to N24.75 billion in FY 2023, reflecting a notable increase of 247% from the N7.14 billion interest expense on borrowings in FY 2022.
To mitigate the risk of exchange rate fluctuations on interest and principal payments related to their outstanding loan balance of $389.08 million with Citi Bank, International Breweries is reportedly employing non-deliverable forward contracts, as stated in the report.
Via ConsumerConnect.