- International Breweries was muddled with N11.30 billion loss in the second quarter of this year, following a 204.7 percent rise
- The alcohol company reported in its Q2 financial statements that its revenue rose to N42.99 billion in Q2 2021, against the corresponding period
- An increase in the cost of goods sold affected the revenue as it jumped by 55.5%, cutting back the gains International Breweries made from the sales
The second quarter of 2021 was a bad outing for International Breweries as the Hugo Rocha-led company recorded 204.7 percent rise in its loss after tax.
The loss increased to N11.30 billion within three months of Q2 this year, significantly surpassing the N3.71 billion it recorded a loss for the period in Q2 2020.
According to the financials of International Breweries, it also struggled to control the rise in the cost of sales, as the company spent N34.06 billion on the production of goods.
This represented a 55.5% increase in the cost of goods sold, considering N21.89 billion was spent in Q2 last year to produce Trophy, Malt brands, Budweiser, Hero Lager, and more products.
What you should know
The rise in cost of sales depleted the revenue of the alcohol and non-alcohol producer, even though it recorded a turnover of N42.99 billion in Q2 2021. This is in contrast to the N25.26 billion generated in Q2 2020.
Following the large chunk cost of goods took in International Breweries' revenue, profit for the period under review stood at N8.93 billion in the second quarter of 2021.
This surpassed the N3.36 billion International Breweries recorded in the corresponding period of last year which falls between April to June.
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In related news, Legit.ng had reported that Coca-cola and Pepsi have increased their product price in Nigeria, the first hike since the recession period in 2016.
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According to the report, the two global brands had made the decision following the reduction in the availability of their rival's product, Bigi.
The local manufacturer had influenced Pepsi and Coca-cola to reduce their product price in 2016 when it entered the market. Bigi is said to have now cut down its distribution in Nigeria.