International Breweries recorded a profit after tax loss of N11.30 billion in the second quarter of this year as the cost of production eats into the company’s revenue.
analysis of the International Breweries financial report revealed that this was 204.7 percent higher than the N3.71 billion loss posted by the firm in the same period of last year.
This occurred as the company failed to curb its production cost, but managed to keep its revenue and profit up.
According to the report, International Breweries profit-before tax increased from N25.26 billion recorded in Q2 2020 to N42.99 billion this year.
It reported a gross profit of N8.93 billion in the second quarter of this year, surpassing the N3.36 billion it recorded in Q2 last year.
However, the company’s revenue and profit were impacted by the cost of sales which rose by 55.5 percent when compared to the corresponding period of Q2 2020.
International Breweries spent N34.06 billion in three months on the production of Trophy lager, Betamalt, Budweiser, Hero Lager, Eagle brands, and other brands.
It spent N21.89 billion to produce the same line of alcohol and non-alcoholic drinks in the same period of last year.
In the six months period which ended on June 30, International Breweries spent N10.9 billion on acquisitions of plant, property, and equipment.
This was higher than the N6.7 billion spent on the same items last year.
Hugo Rocha replaced Annabelle Detroit as International Breweries Managing Director on January 1, 2020.
Rocha had previously worked with ABInBev group, owners of International Breweries where he served in the Sales, Process Integration, and Human Resources units.