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Despite increase in marketing spend, International Breweries posts 130% loss in Q3 2019

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Despite increase in marketing spend, International Breweries posts 130% loss in Q3 2019

Alcoholic beverage maker and a subsidiary of AbInBev, International Breweries has recorded a whopping 130.41% increase in loss after tax in its Q3 2019 financial statement for the period ended September 30, 2019. This is despite 35.95% increase in marketing and promotion expenses.

The company’s revenue grew by 16.69% to N97.3 billion in 2019 compared to N83.3 billion in the comparative period of 2018.

Loss before tax, however, increased by 161.99% from N9.2 billion in 2018 to N24.1 billion in 2019. Loss after tax further grew by 130.41% to N16.4 billion in 2019 when compared to N7.1 billion in 2018.

Read also: Stanbic IBTC records 66.7% drop in revenue from fees and commissions in Q3 2019

Cost of sales amounted to N66.1 billion in 2019 compared to N51.1 billion in 2018. This represents a 29.39% increase.

International Breweries spent N22.8 billion for marketing and promotion in the review period of 2019 as against N16.8 billion in 2018. This marks an increase of 35.95%. Despite this spending the company’s bottom-line still recorded more loss.

Administrative expenses cost the alcoholic beverage maker N19.5 billion in 2019, a 59.58% increase from N12.2 billion in 2018.

International Breweries traded at N12.60 during Monday’s trading session on the floor of the Nigerian Stock Exchange (NSE). 1-year return remains negative at 59.35%. Year to date the stock is down by 60%.

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