International Breweries Declares 43.7Billion Gross Profit at 46th AGM

International Breweries Plc (IBPLC), a leading beverage company and a proud part of the world’s largest brewer with over 500 beer brands, AB InBev, held its Annual General Meeting in Lagos on Wednesday.

The AGM is the 46^th the company would be hosting and it presented a forum to reflect on the company’s achievements, discuss plans, and appreciate the stakeholders who have been instrumental in IBPLC’s growth and success since its inception.

The company recorded a remarkable increase in revenue in 2022 when compared to the revenue generated in the previous year. Closing the financial year of 2022 revenue with ₦218.7 billion against ₦182.3 billion in the same period in 2021.

With the challenging economic circumstances, the gross profit for 2022 decreased to ₦43.7 billion compared to the company’s profit of ₦46.4 billion in 2022. Finance Income increased from ₦3.1 billion in 2021 to ₦5.2 billion in 2022. There was an increase in the Net Financial Cost accruing ₦5.6 billion in 2022, from ₦ 1.8 billion in 2021.

The Chairman, Board of Directors, HRH, Obi of Onitsha, Nnaemeka Achebe, welcomed the shareholders to the meeting which according to him has been the most attended since the COVID-19 pandemic. Achebe noted that “The company continues to sustain its production volumes despite inflation. 2022 was a year that tested the global economy with multiple challenges. 2022 was a year of transformation for us, and we want to commend the Board of Directors for their courageous decision to embark on multiple initiatives to position our Company for better returns.”

During the meeting, key financial achievements and milestones were highlighted, showcasing IBPLC’s commitment to excellence across all areas of its operations. The company’s innovative product portfolio, strategic partnerships, and investments in state-of-the-art facilities were recognized as pivotal factors in its continuous growth.

The company’s leadership team presented a comprehensive roadmap for sustainable growth, emphasizing its commitment to innovation, customer satisfaction, and responsible business practices.

Managing Director, International Breweries Plc, Carlos Coutino, appreciated shareholders for their commitment while stating the company’s challenges occasioned by the government’s increase of excise duty from 40 Naira per litre of excise to 75 Naira per litre, noting that there will be a further increase to 100 Naira in 2024.

According to him, “We foresee that the business sector may witness a reduction as consumer disposable income has reduced significantly. What have we done so far? We have had the support of the Manufacturers Association of Nigeria (MAN) and we call on the government and our president to look into these challenges in the beer sector. We request a new and positive policy to mitigate the excessive increase and any form of double taxation. We also ask the government to give the industry a three to six months moratorium to plan and adjust to new policies.”

Coutino, however, reiterated IBPLC’s commitment to delivering value, driving innovation, and contributing positively to the communities in which it operates.

National Chairman, Progressive Shareholders of Nigeria, Chief Boniface Okezie, said “IBPLC has one of the best product lines in the country. Government should remove double taxation. When inflation increases and people lose their jobs, government does not offer jobs rather the private sector they are over-taxing provides jobs. This is why MAN should resist obnoxious policies. I will also commend IBPLC for receiving over 15 awards despite the economic challenges as this shows the company prioritizes quality and its consumers.”

Mrs. Bisi Bakare, the National Coordinator of the Pragmatic Association of Nigeria, expressed her appreciation for International Breweries Plc’s consistent commitment to shareholder engagement. She commended the company for organizing annual physical Annual General Meetings (AGMs) as a way of respecting and involving its shareholders, contrasting with other companies that either neglect to hold AGMs or opt for virtual meetings. Mrs. Bakare’s words underscore the value that IBPLC places on maintaining a strong and respectful relationship with its shareholders.

According to Finance Director, International Breweries Plc, David Tomlinson, “IBPLC has continued its transformation journey that began 3 years ago. Our focus remains setting the business on the path to profitability as we continue to invest in aggressive marketing and rigorous research that will consolidate our position as a leader indeed in Nigeria’s brewery sector.”

The platform fostered engaging discussions, open dialogue, and constructive feedback, enabling IBPLC to strengthen its relationship with shareholders further. The company reiterates its commitment to transparency, accountability, and sustainable growth, promoting a culture of mutual trust and collaboration.