Following the successful execution of its rights issue, International Breweries (IB) Plc has assured its investors and stakeholders of its continuous commitment to the sustainable growth of the company.
The chairman of the Board of Directors, HRM Nnaemeka Achebe, in a statement commended the company’s progress, particularly after its rights issue which enabled the repayment of its forex denominated loan which had impacted the company over the years.
According to Achebe, the elimination of our FX exposure will improve IB’s cash flows and will support the company’s return to profitability. The offer was supported by our core shareholder, Anheuser-Busch InBev (AB InBev) who followed their rights in full. This is a strong indication of AB InBev’s commitment and belief in the Nigerian market opportunity and overall Nigerian economy.”
He stated, “we are proud of the strides we have made in strengthening our business foundation and positioning for sustainable growth. The repayment of our outstanding $379.9 million loan, enabled by our parent company, AB InBev has bolstered our financial position.
“This recapitalization not only strengthens our balance sheet but also sets the stage for long-term profitability and growth. We are now better equipped to drive innovation, improve operational efficiency, and seize new opportunities.”
At its recently held 47th Annual General Meeting (AGM), IB outlined its achievements and future strategies, emphasising the critical role shareholders have played in its progress.
The Company recorded a successful rights issue of 161.172 billion shares, generating net proceeds of N581.7 billion. For the financial period ended December 31, 2023, IB recorded a 19.2 per cent increase in revenue, rising to N260.6 billion in 2023 from N218.7 billion in 2022. Gross profit climbed by 17.3 per cent to N86.3 billion, while finance cost surged by 178 per cent from N10.6 billion in 2022 to N29.7 billion in 2023, driven largely by FX losses as a result of currency devaluation at the macro level and higher interest expense on borrowings.
Managing director of IB, Carlos Coutino, highlighted the challenges posed by inflation and forex losses from devaluation of the naira, emphasising the company’s efforts to streamline operations.
Coutino said IB’s commitment to excellence was underscored by its continued investment in new products, strategic partnerships, and state-of-the-art facilities, which have been key drivers of growth.
Shareholders expressed optimism about the company’s future, especially after the full repayment of its foreign loan, which will enable IB to retain more of its earnings for future growth.
The rights issue, which opened on May 21, 2024, and closed on June 10, 2024, offered shareholders the chance to increase their ownership by subscribing to six new shares for every one held, at N3.65 per share. The offer also attracted new investors, contributing to the company’s expansion.
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