FX LOAN REPAYMENT TO BOOST INTERNATIONAL BREWERIES' PROFITABILITY – CHAIRMAN
Detailed Breakdown:
The Chairman of International Breweries Plc, Obi Nnaemeka Achebe, has announced that the company's recent repayment of its foreign exchange-denominated loans will significantly improve its financial health, leading to sustainable profitability. He attributed this recovery to the company's rights issue, which allowed for the repayment of the forex loan.
Key Points:
Rights Issue Outcome: International Breweries concluded a rights issue of 161 billion shares, raising N581.7 billion, which enabled the repayment of a $379.9 million forex loan. This recapitalization strengthens the company's balance sheet, positioning it for future growth.
Core Shareholder Support: Anheuser-Busch InBev (AB InBev), the company’s parent firm, fully supported the rights issue, indicating its strong belief in the Nigerian market and its commitment to the Nigerian economy.
Performance Improvements: International Breweries achieved a 19.2% revenue increase, reaching N260.6 billion in 2023, up from N218.7 billion in 2022. Gross profits rose by 17.3%, though the company faced significant challenges with rising finance costs due to currency devaluation and interest expenses.
Future Outlook:
The company is focused on innovation, operational efficiency, and cost management strategies, according to Managing Director Carlos Coutino. Efforts are underway to streamline operations, reduce costs, and enhance customer satisfaction despite inflationary pressures and foreign exchange losses.
Finance Director David Tomlinson reaffirmed the company’s commitment to long-term growth, citing the significant reduction of more than 70% of its foreign exchange obligations as a key factor that will allow the company to explore new growth opportunities with reduced financial risk.
Detailed Breakdown:
The Chairman of International Breweries Plc, Obi Nnaemeka Achebe, has announced that the company's recent repayment of its foreign exchange-denominated loans will significantly improve its financial health, leading to sustainable profitability. He attributed this recovery to the company's rights issue, which allowed for the repayment of the forex loan.
Key Points:
Rights Issue Outcome: International Breweries concluded a rights issue of 161 billion shares, raising N581.7 billion, which enabled the repayment of a $379.9 million forex loan. This recapitalization strengthens the company's balance sheet, positioning it for future growth.
Core Shareholder Support: Anheuser-Busch InBev (AB InBev), the company’s parent firm, fully supported the rights issue, indicating its strong belief in the Nigerian market and its commitment to the Nigerian economy.
Performance Improvements: International Breweries achieved a 19.2% revenue increase, reaching N260.6 billion in 2023, up from N218.7 billion in 2022. Gross profits rose by 17.3%, though the company faced significant challenges with rising finance costs due to currency devaluation and interest expenses.
Future Outlook:
The company is focused on innovation, operational efficiency, and cost management strategies, according to Managing Director Carlos Coutino. Efforts are underway to streamline operations, reduce costs, and enhance customer satisfaction despite inflationary pressures and foreign exchange losses.
Finance Director David Tomlinson reaffirmed the company’s commitment to long-term growth, citing the significant reduction of more than 70% of its foreign exchange obligations as a key factor that will allow the company to explore new growth opportunities with reduced financial risk.