International Breweries (‘the Company’) reported an impressive year-on-year revenue growth of 38% to N67.65 billion in Q3 2023 (Q3 2022: N49.03 billion). Amid the prevailing inflationary pressures curbing consumer spending, it is our inference that the Company implemented pricing adjustments during the quarter. Such a move was essential to offset the impact of escalating input costs and to sustain good margins. Notwithstanding the safeguarding of margins, the Company persisted in a net loss position, primarily attributable to the elevated finance cost.


In our last report, we underscored the Company’s heightened financial leverage, anticipating a consequent strain on profitability as increased funds will be allocated towards debt servicing. The impact of this was observed in Q3 2023, and we anticipate similar trend in the final quarter of the fiscal year 2023.

Furthermore, the Company is poised to conclude the fiscal year with a net loss, attributable to the substantial finance costs and foreign exchange losses incurred. In light of these factors, we retain our SELL recommendation for the stock, with a fair value of N3.45.

Please follow the link “International Breweries Plc Q3 2023 – Heightened Finance Cost Adversely Impacts Profitability” to view the whole report.

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