International Breweries recorded a revenue growth of 32.1% to N46.43 billion in the third quarter of 2021. This is contained in its Q3 2021 financial report, released on the website of the Nigerian Exchange Group (NGX).
According to the report, the firm’s top line increased by 32.1% from N35.15 billion recorded in the corresponding period of 2020 to N46.43 billion, Similarly, printed a profit after tax of N367.5 million in the review period, a major boost from the downturn recorded in the previous year.
International Breweries recorded a revenue boost of 32.1% in Q3 2021 from N35.15 billion recorded in the corresponding period of 2020 to N46.43 billion in the current period. Cost of sales also increased by 16% to N33.86 billion, thereby yielding a gross profit of N12.57 billion in Q3 2021, a significant jump from N5.96 billion recorded in the previous year. Similarly, the gross profit margin moved upward from 16.9% recorded in Q3 2020 to 27.1% in the review period.
Its earning per share also moved towards positive territory from the loss recorded in the corresponding period of 2020 to N1 in Q3 2021. A cursory analysis of the statement of financial position shows that the total assets of the company increased by 8.3% in the past nine months. It grew from N372.65 billion recorded as of the end of last year to N403.46 billion as of September 2021. In the same vein, inventories jumped significantly by 65.8% to N23.54 billion as of Q3 2021 from N14.19 billion recorded as of the end of last year.
Recall that, International Breweries printed negative returns in the previous year, largely attributed to the effect of the covid-19 pandemic and lockdown measures around the world, specifically Nigeria. The brewing company declared a loss of N1.52 billion in the third quarter of 2020. The positive movement in the company’s Q3 2021 result is an indication of recovery from the losses recorded in the previous year, as businesses continue to open and parties resuming across most areas in the country.
A further breakdown of the financials reveals that during the 9 months period ended 30th September 2021, the company acquired plant, property and equipment with a total cost of N16.2 billion as against N12.1 billion in the corresponding 2020 period.
It is worth noting that gross and EBITDA margins went up by over 1000bps and 240bps respectively.
The positive movement in the company’s top and bottom line could be an indication of a positive financial performance as the year goes to an extent, as opposed to the negative returns printed in the previous year.
– The Guardian