Earnings Update: International Breweries Plc Q2 2024 – FX Headwinds Intensify Losses but Optimism Persists.

Event

International Breweries Plc (“the Group”) reported a 94% year-on-year rise in revenue, reaching N119.98 billion in Q2 2024, compared to N61.73 billion in Q2 2023. We attribute this growth to strategic pricing adjustments aimed at mitigating the adverse effect of inflation on input costs and consumer spending.

Outlook

We anticipate that revenue will keep growing, supported by strategic price adjustments. Furthermore, the successful capital raise conducted during the quarter is expected to lower the Group’s leverage moving forward. This change should ease the pressure of finance costs and position the Group more favorably for future growth opportunities.

In view of these developments, we have revised our fair value upwards to N4.23 (Previously: N3.77). Given the current market price of N4.01, our estimated total return stands at 5%. Hence, we retain our HOLD recommendation for the stock.

Please follow the link “International Breweries Plc Q2 2024 – FX Headwinds Intensify Losses but Optimism Persists” to view the whole report.                        

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