The Half-Year 2019 financial statement of International Breweries Plc has revealed a further increase in its Loss Before Tax (LBT), this time by an astronomical 101% when compared with the corresponding period of 2018.
In other words, the LBT upped by a margin of N5.283 billion, from N5.243 billion to N10.536 billion at HY2018 and HY2019 respectively.
These details and other information are disclosed in the unaudited financial statements of International Breweries as published on the website of the Nigerian Stock Exchange (NSE) today.
Ironically, the company’s revenue appreciated by 29.22% from the N53.110 billion at HY2018 to the N68.631 billion posted in the same period in 2019. Despite the improvement in the company’s turnover, other Key Performance Indicators (KPIs) followed the negative run of loss.
Loss After Tax increased dramatically by 140.36% to N6.841 billion at the end of June this year, up from the N2.846 billion declared in the same period the year before.
The reasons for the loss: The steep decline in the bottom-line of International Breweries is attributable to three principal factors as the financial statement for the period under review states.
- First, the company’s Cost of Sales rose by as much as N13.239 billion between HY2018 and HY2019. By implication, its cost of doing business increased greatly between the two periods without impacting its bottom-line positively.
- Similarly, Marketing and Promotion Expenses climbed up to N13.511 billion at HY2019, compared to the HY2018 figure of N10.351 billion.
- Finally, Administrative Expenses went up from N7.802 billion at HY2018 to N12.994 billion at HY2019.
Loss Per Share closed at 80 kobo at the end of June 2019 up from 33 kobo at HY2018, a 142% rise.
Note: International Breweries is a subsidiary of AB InBev, the world’s largest brewer. International Breweries currently trades on the floor of the NSE at N12.50 per share.