By Cynthia Ezekwe.
International Breweries Plc said it raked in N218.7 billion revenue in the 2022 financial period , against N182.3 billion recorded in the same period in 2021.
The company made the disclosure in a financial statement report presented at its 46th annual general meeting held recently in Lagos.
Further breakdown of the company’s financial performance showed that its gross profit declined to N43.7 billion compared to the N46.4 billion in the previous year. This was attributed to the challenging economic circumstances experienced during the reviewed period.
The company also posted an increase in its finance income which rose from N3.1 billion in 2021 to N5.2 billion in 2022, while its net financial cost stood at N5.6 billion in 2022, representing a growth from N1.8 billion in 2021.
Nnaemeka Achebe, chairman of the Board of Directors, while speaking at the meeting of the company, noted that the company has continued to sustain its production volumes despite inflation.
According to Achebe, 2022 was a year that tested the global economy with multiple challenges and also a year of transformation for the business as it embarked on multiple initiatives to position the company for better returns.
On his part, Carlos Coutino, managing director of International Breweries Plc, noted that one of the challenges experienced within the year under review was the increase of excise duty from N40 per litre of excise to N75 per litre, even as he decried the plan to further increase to N100 in 2024.
According to him, there is a gloomy outlook for the business sector following a significant reduction in consumer disposable income.
Coutino implored the government to put out a positive policy to mitigate the excessive increase and double taxation and to give the industry a three to six months moratorium to adjust to new policies.
David Tomlinson, finance director of International Breweries Plc, noted that the company’s focus remains on setting the business on the path to profitability as it continues to invest in aggressive marketing and rigorous research that will consolidate its position as a leader in Nigeria’s brewery sector.
Boniface Okezie, national chairman of Progressive Shareholders of Nigeria, urged the government to remove double taxation to curb inflation.
“When inflation increases and people lose their jobs, the government does not provide jobs rather the private sector they are over-taxing provides jobs. We commend IBPLC for receiving over 15 awards despite the economic challenges showing the company prioritizes quality and its consumers,” he added.
