International Breweries posts N12.37bn annual loss

International Breweries Plc has reported a loss of N12.37 billion for the 2020 financial year, compared with N27.79 billion in 2019.

The company’s loss before tax fell to N24.87 billion last year from N36.17 billion in 2019, according to its financial statements released on Monday.

Its revenue, however, rose to N136.79 billion from N132.35billion.

International Breweries said despite the negative impacts seen in March and April 2020 due to lockdown restrictions, the business was able to recover and deliver a strong revenue growth to close the year.

It said, “Our board and management are confident that the business will continue as a going concern.

“A rights issue was conducted in February 2020 to deleverage the company’s balance sheet. As a result of the rights issue, total borrowings reduced from N263.6 billion as at 31 December 2019 to N110.7 billion as at 31 December 2020.”

The company said its operating cash flows increased to N52.2 billion in 2020 from N40.7 billion in the previous year to cover its short-term obligations.

“We will continue to explore available options to settle foreign-denominated liabilities and hedging instruments to mitigate foreign currency risks. The company is strategically positioned for success in the future,” it added.

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