International Breweries Plc, released its second quarter unaudited results for the period ended June 30, 2024, reporting a loss per share of N1.76, a significant increase from the N0.79 loss per share recorded in second quarter of 2023.

Despite a 94.4% year-on-year surge in revenue, the brewer’s performance was impacted by a substantial rise in operating expenses and foreign exchange losses.

The company’s revenue growth was driven by higher prices and improved volume performance, with a 23% price increase implemented during the period.

However, the cost of sales grew by 82.1% year-on-year, mainly due to the high inflationary environment. The company reported an increased operating loss of N39.91 billion in second quarter of 2024, driven by a 114.1% year-on-year increase in operating expenses and an 11.4x year-on-year increase in foreign exchange losses.

Net finance costs also grew significantly, primarily due to higher interest expenses on loans.

The company’s pre-tax loss widened to NGN61.81 billion in Q2-24, despite an income tax credit of NGN14.49 billion. The loss after tax was NGN47.32 billion, compared to NGN21.29 billion in Q2-23.

Looking forward, analysts expect strong revenue growth driven by higher prices and increased volume. However, the company’s performance will likely continue to be impacted by currency depreciation and high operating expenses.