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International Breweries Plc Posts Loss In Q1

Last Thursday, International Breweries Plc, makers of brewer of Trophy Lager, Castle Lager, Beta Malt among others, said it recorded a net loss of N1.7bn in the first quarter of 2016/2017 financial year.

This, it explained, was a drop from last year when it recorded a N421 million profit.

International Breweries Plc further explained that the loss was because of fall in the exchange rate of the Naira to Dollar.

The company, in a statement received by Business Post, disclosed that it hopes to see improvements in the coming days.

International Breweries Plc had outstanding dollar denominated loans which had to be re-evaluated when the Central Bank of Nigeria (CBN) moved to a floating exchange rate system in June, causing the value of the loan to bloat.

Despite the currency instability, the company saw its revenue grow by 32% to N6.9bn, up from N5.2bn in the preceding year.

It further said cost of sales rose 27% to N3.5bn, from N2.5bn due to higher cost of raw material inputs caused by the naira devaluation.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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