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International Breweries Plc has reported its seventh consecutive after-tax loss, even as it achieved significant revenue growth in the 2024 financial year. Ongoing foreign exchange volatility and rising input costs have heavily impacted the company’s financial results.
According to its audited annual financial statement, the brewery recorded a net loss of N113.6 billion for the year ending December 31, 2024, marking a 62.5 percent increase from the N70 billion loss in 2023. These persistent losses are largely due to substantial foreign exchange losses stemming from the naira’s devaluation and Nigeria’s unified exchange rate policy.
The Osun-based manufacturer saw its revenue increase from N260.5 billion in 2023 to N488.9 billion in 2024, achieving its highest earnings in nine years. However, this revenue growth was offset by significant foreign exchange-related losses and higher production costs. The company stated, “While we continue to deliver strong revenue growth, our inability to source adequate foreign exchange due to market illiquidity impacts profitability, leading to substantial FX losses on our foreign currency-denominated debt and liabilities.”
The report indicates that unrealized foreign exchange losses amounted to N128.4 billion, while realized losses surged to N294.1 billion, up from N14.3 billion the previous year. This situation reflects the company’s reliance on dollar-denominated loans taken in prior years to support operations and capital projects.
Operating in a challenging macroeconomic environment, the firm has also faced increased raw material costs. The expenses for key brewing inputs, such as barley and hops—primarily imported—rose dramatically from N25.6 billion in 2023 to N58.14 billion in 2024, more than doubling year-on-year.
Since experiencing its first loss in 2018, when it recorded an after-tax deficit of N3.87 billion, the company’s financial difficulties have intensified. Losses continued in 2019 with N27.79 billion, decreased to N16.08 billion in 2020, then increased again to N17.66 billion in 2021 and N21.63 billion in 2022.
To alleviate its financial burdens, International Breweries executed a rights issue program in May 2024, raising capital to repay foreign currency loans. The company successfully settled a $379.9 million loan with backing from its parent company, Anheuser-Busch InBev. Chairman Obi Achebe noted that repaying the forex-denominated liability represents a significant step toward recovery.
“This recapitalisation not only strengthens our balance sheet but also lays the groundwork for long-term profitability and growth,” he stated. The company anticipates that eliminating its foreign exchange exposure will enhance cash flow and facilitate a return to profitability in 2025, assuming no significant external currency shocks occur.
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Anheuser-Busch InBev’s full participation in the rights issue highlights its commitment to the Nigerian market and confidence in the company’s recovery strategy. With its debt burden reduced and revenue base expanding, International Breweries is now focused on improving operational efficiency, fostering innovation, and seizing emerging market opportunities in Nigeria’s competitive beverage sector.
As the company aims to stabilize its financial performance, management prioritizes cost control, local sourcing of raw materials, and risk mitigation against macroeconomic shocks to protect future earnings.
