International Breweries Plc Posts Loss In Q1

August 8, 2016

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

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.

Mr Olowookere can be reached via [email protected]

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