FX loan repayment will boost International Breweries profitability – Chair
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The Chairman of the Board of Directors of International Breweries Plc, Obi Nnaemeka Achebe, has said that the repayment of the company’s foreign exchange-denominated loans will propel the firm back to the path of sustainable profitability.
A statement from the brewer on Monday indicated that Achebe also 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.
He said, “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 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.”
“We are proud of the strides we have made in strengthening our business foundation and positioning for sustainable growth. The repayment of our outstanding $379.9m 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.”
IBPlc recently concluded a rights issue of 161,172,395,100 shares, generating N581.7bn.
The rights issue, which opened on May 21, and closed on June 10, offered shareholders the chance to increase their ownership by subscribing to six new shares for every one held, at N3.65 per share.
The offer also attracted new investors.
IBPlc recently concluded a rights issue of 161,172,395,100 shares, generating N581.7bn.
The rights issue, which opened on May 21, and closed on June 10, offered shareholders the chance to increase their ownership by subscribing to six new shares for every one held, at N3.65 per share.
The offer also attracted new investors.
Shareholders expressed optimism about the brewer’s future, especially after the repayment of its foreign loan, which would enable it to retain more of its earnings for future growth.
The firm’s Finance Director, David Tomlinson, highlighted the brewer’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 per cent of our foreign exchange obligations. This strengthens our capital structure and provides us with the flexibility to explore growth opportunities with reduced risk,” Tomlinson added.
FX loan repayment will boost International Breweries profitability – Chair (punchng.com)
