Business - Companies
Updated: July 28, 2020

International Breweries Revenue, Profit Drops Significantly In Q2 2020

By Olalekan Fakoyejo
July 28, 2020
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International Breweries has released its unaudited financial statements for the second quarter of 2020, and its revenue is quite disappointing, as it couldn't surpass that of the corresponding period in 2019. In the financial statement seen by AllNews, International Breweries revenue fell short of the N33.5 billion in Q2 2019.

In this year's second quarter, revenue generated by International Breweries fell at N25.2 billion, reflecting the impact of the COVID-19 pandemic on Brewery companies in Nigeria. The industry had been hit by the lockdown measure which was adopted by the Federal Government in order to curb the spread of coronavirus.

Various hospitality businesses were closed, affecting the distribution of International Breweries, which went on to cause a decline in its patronage and earnings. Despite its revenue crumbling down, the company was able to reduce its production cost, moving from N27.7 billion of Q2 last year to N21.8 billion in Q2 2020.

This, however, couldn't stop the gross profit of International Breweries from plummeting, as the financial statement showed the company couldn't surpass the N5.7 billion it generated in Q2 2019, as the report showed that the brewery company could only gross N3.3 billion in profit for Q2 2020.

International Breweries also reduced its Marketing, promotion and distribution expenses during the 2020 second quarter - which falls between April to June - disbursing N1.4 billion, a significantly reduction when compared to the corresponding period of 2019, when International Breweries spent N2.9 billion.

The company recorded loss before tax having dropped from N5.2 billion of Q2 2019 to N4.2 billion in this year's second quarter. International Breweries also recorded loss for period in Q2 2020, as it reported N3.7 billion, surpassing the N2.8 billion of last year's Q2 2019.