Following the successful execution of its rights issue, the largest equity offering in the Nigerian capital market, International Breweries Plc (IBPLC), has assured its investors and stakeholders of its continuous commitment to the sustainable growth of the company.

The Chairman of the Board of Directors, HRM Nnaemeka Achebe, in a statement to the company’s shareholders commended the company’s progress, particularly after its Rights Issue which enabled the repayment of its forex denominated loan which had impacted the company over the years.
According to Achebe, “the elimination of our FX exposure will improve IBPLC’s cash flows and will support the company’s return to profitability. The offer was supported by our core shareholder, Anheuser-Busch InBev (AB InBev) who followed their rights in full. This is a strong indication of AB InBev’s commitment and belief in the Nigerian market opportunity and overall Nigerian economy.”
Continuing, Achebe said, “We are proud of the strides we have made in strengthening our business foundation and positioning for sustainable growth. The repayment of our outstanding $379.9 million loan, enabled by our parent company, AB InBev has bolstered our financial position. This recapitalization not only strengthens our balance sheet but also sets the stage for long-term profitability and growth. We are now better equipped to drive innovation, improve operational efficiency, and seize new opportunities.”

At its recently held 47th Annual General Meeting (AGM), IBPLC, the producers of Trophy, Hero, Budweiser, Castle Lite and other beverage brands outlined its achievements and future strategies while emphasizing the critical role shareholders have played in its progress. A key highlight was the successful Rights Issue of 161,172,395,100 shares, generating net proceeds of ₦581.7 billion.
The financial report presented at the meeting showed impressive results for the year. IBPLC recorded a 19.2% increase in revenue, rising to ₦260.6 billion in 2023 from ₦218.7 billion in 2022. Gross profit climbed by 17.3% to ₦86.3 billion, while finance cost surged by 178% from N10.6b in 2022 to N29.7b in 2023, driven largely by FX losses as a result of currency devaluation at the macro level and higher interest expense on borrowings. Despite challenging economic conditions, the company noted it remains committed to innovation, customer satisfaction, and responsible business practices.

Carlos Coutino, Managing Director of IBPLC, Highlighted the challenges posed by inflation and forex losses from devaluation of the Naira but emphasized the company’s efforts to streamline operations. “In line with our business principles, we will continue to manage our costs tightly through our different cost management strategies as we remain focused on delivering value to our customers and driving innovation.”
Coutino further said IBPLC’s commitment to excellence was underscored by its continued investment in new products, strategic partnerships, and state-of-the-art facilities, which have been key drivers of growth.

Shareholders expressed optimism about the company’s future, especially after the full repayment of its foreign loan, which will enable IBPLC to retain more of its earnings for future growth.
Eke Chibuzor, General Secretary of the Independent Shareholders Association of Nigeria (ISAN), commended the company’s financial turnaround. “While dividends have not been declared, management’s strategy is clear, and the 19% revenue growth shows progress. The fact that the company has repaid its loan with funds from the Rights Issue is a significant achievement. The future looks promising for both IBPLC and its shareholders.” Shareholder Mrs. Akinlola Modupe Temitayo echoed these sentiments, expressing confidence in the company’s trajectory.

David Tomlinson, IBPLC’s Finance Director, reiterated the company’s allegiance to sustainable profitability. “Our focus remains on long-term growth. Last year, we made significant progress, and, this year, our successful Rights Issue—Nigeria’s largest—allowed us to reduce more than 70% of our foreign exchange obligations. This strengthens our capital structure and provides us with the flexibility to explore growth opportunities with reduced risk.”

At the AGM, two key appointments were confirmed as board members of the company: the Corporate Affairs and Regulatory Director, Temitope Oguntokun, as Executive Director, and Chijioke Nkechinyere Ugochukwu as Independent Non-Executive Director.
The Rights Issue, which opened on May 21, 2024, and closed on June 10, 2024, offered shareholders the chance to increase their ownership by subscribing to six new shares for every one held, at ₦3.65 per share. The offer also attracted new investors, contributing to the company’s expansion.
With approval from the Securities and Exchange Commission (SEC) on the basis of allotment, the Rights Issue has been completed, marking a transformative moment for IBPLC. By converting long-term debt into equity, the company is now well-positioned to pursue new growth initiatives with less financial burden and greater stability.