International Breweries Plc, the Nigerian subsidiary of AB InBev, has extended its streak of annual losses into a seventh consecutive year, reporting a post-tax loss of NGN 113.61 billion (USD 88.2 million) for the 2024 financial year. This marks a 62.25% increase from the NGN 70.03 billion loss posted in 2023.
The company also reported its highest revenue in nine years, reaching NGN 488.96 billion (USD 379.3 million), a robust 87.63% year-on-year increase driven entirely by domestic sales. Gross profit also improved by 52.26% to NGN 131.3 billion (USD 101.9 million). However, these gains were overshadowed by mounting operational expenses and a dramatic surge in net foreign exchange losses, which skyrocketed by over 1,000% to NGN 165.6 billion (USD 128.3 million), up from NGN 14.3 billion in 2023.
This is also highlighted in the strong operating cash flows. The company generated operating cash flows of NGN 148.9 billion (USD 115.4 million), nearly doubling from 2023 levels. Finance income rose 25.42% to NGN 14 billion, mainly from call deposits and treasury bills, while finance costs also increased by 16.92% to NGN 34.7 billion.
The main cause of the financial distress lies in Nigeria’s persistent foreign exchange challenges. The inability to access sufficient USD to service foreign currency-denominated debt led to massive FX losses, according to the company’s financial report.
To stabilize its financial position, International Breweries launched a massive rights issue in May 2024, targeting NGN 588 billion (USD 456 million). The offering was extended to non-shareholders and involved the issuance of over 161 billion new shares at NGN 3.65 per share. Proceeds from the issue were used to retire outstanding USD-denominated loans and to support working capital.
As of December 2024, AB InBev Nigeria Holdings BV controlled 96.1% of International Breweries, holding over 161 billion shares. The Nigerian entity, formed through the merger of former SABMiller assets following AB InBev’s acquisition in 2016, includes the former Intafact Beverages, Pabod Breweries, and International Breweries.
Finance Director David Tomlinson expressed optimism about 2025, stating that with the elimination of significant FX liabilities, the company expects a return to profitability.
International Breweries closed at NGN 5.09 per share on the Nigerian Stock Exchange as of April 4, 2025, with a year-to-date performance of 15.63%
Conclusion: Despite record-high revenues and strong operating cash flow in 2024, International Breweries remained in deep financial distress due to massive foreign exchange losses stemming from USD-denominated debt, which wiped out its gains and led to its seventh consecutive annual loss. The contrast between robust sales growth and mounting paper losses highlights how non-operational factors like currency volatility can severely distort profitability, even when core business performance is strong.
