International Brewery reports increase in revenue to N49 billon in Q3 2022

International Breweries Plc has posted its Q3 results, which show a record 5.6% growth in revenue to record N49 billion, from N46 billion in Q3 2021.

However, increased costs of sales and other expenses led to a loss for the period to the tune of N3.1 billion, compared to N2.2 billion same time last year. This is a result of a reduction in volume momentum following a strong first half of the year.

The company’s unaudited financial statement for three months ended 30th September shows that International Breweries saw a jump in its cost of sales for the period amid rising inflation.

During the period, the cost of sales was valued at N38 billion, a 17% high from the N33 billion in the same period last year, while the gross profit stood at N10 billion, from N13 billion in the same period last year. Similarly, other expenses grew significantly to N1.3 billion, from N131 million in Q3 last year.

The company, in a statement, however, said its volumes declined in the third quarter of 2022 due to a soft industry and ongoing supply chain constraints.


Hugo Rocha, the company’s managing director, attributed the development to ongoing supply chain constraints, and the impact of inflation on consumers’ disposable income in the last three months.

The managing director’s statement:

He states, “The last three months have been characterized by elevated inflationary pressure, which has had an impact on consumers’ disposable income. The period experienced especially severe weather with a longer rainy season and floods in key markets. However, despite the difficult quarter, we remain focused on our winning commercial strategy. Year-to-date, our brands remain resilient and continue to deliver volume growth. We remain committed to returning to profitability and creating value for our stakeholders.”

Rocha also stated that International Breweries remained resilient during the period, led by the company’s core brands, premium portfolio, and innovation. “As part of our ‘Beyond Beer’ strategy, we launched ‘Flying Fish’ during the quarter to address incremental occasions and consumer needs. This has been well received and continues to gain acceptance in the market,” he said.

The finance director’s statement

Eduardo Caceres, finance director, noted that the brewer’s top line grew by 5.6%, driven by its revenue management initiatives. Gross profit and margins declined on elevated costs largely due to higher energy prices, FX illiquidity, commodity costs headwinds, severe weather, and overall inflationary pressures, maintaining that the company remains EBITDA positive on the back of prudent resource allocation and cost management.

According to Caceres, “Year-to-date, top-line grew by double-digit and revenue management initiatives in the first half of the year. We continue to grow beer volume and gain share driven by our core and premium brands. We remain positive about the industry’s outlook and remain confident in the future growth of our business and will continue to invest and strengthen our brand portfolio across all segments.”