Following the successful execution of its rights issue, the Chairman of the Board of Directors, International Breweries Plc (IBPLC), HRM Nnaemeka Achebe has assured investors and stakeholders that the elimination of foreign exchange exposure will improve the company's cash flows and support the return to profitability.
The company recently concluded a rights issue offer of 161,172,395,100 shares to its shareholders at the offer price of N3.65 per share.
He 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.
Achebe said, "the elimination of our foreign exchange 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."
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 N581.7 billion.
The Managing Director of IBPLC, Carlos Coutino who highlighted the challenges posed by inflation and forex losses from devaluation of the Naira, however, emphasized the company's efforts to streamline operations.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
He said, "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."
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.
IBPLC's Finance Director, David Tomlinson 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 70per cent of our foreign exchange obligations. This strengthens our capital structure and provides us with the flexibility to explore growth opportunities with reduced risk."
