International Breweries Plc

Image placeholder
International Breweries Plc
  • International Breweries Plc
  • Year : Jun 2021
3 Tokens
USD 300.00
Summary

Although IBPLC has reported steady growth in revenue since integration, earnings resilience has been weak with persistent operating losses. Margin pressure has been driven by the depreciation of the Naira, which has raised the prices of imported raw materials input and other capital and operating expenses. Depreciation also remains high which relates to returnable packaging materials. Volume growth and efficiency improvements are expected to contribute to higher margins going forward, however GCR expects profitability to remain weak in the short term because of high fixed costs and foreign exchange exposures.

Additional Information

The Stable Outlook reflects GCR’s view that IBPC will continue to benefit from tangible technical and financial support from AB InBev until there is meaningful improvement in operational performance, earnings, and credit protection metrics. Sustained growth in revenue and firmer margins that translate into profitability and improvement in operating cash flows. Positive rating action could also emanate from favourable restructuring of the debt profile, as well as improvement in earnings based gearing metrics below 200%.

Related Publication

Sundry Foods Funding SPV Plc’s Series 1 Senior Unsecured Bond (2021-08)

The Sponsor, Sundry Foods, is one of the leading food service companies in the Nigerian Quick Service Restaurants industry. GCR accorded a long ter...

Nigeria’s Capital Markets: Robust Corporate Debt Issuance Expected Over 2021

GCR expects corporate debt issuance in Nigeria to remain robust throughout 2021. Debt capital market activity in Nigeria has increased significantl...

GCR Risk Score Snapshot as of Dec 31st 2019

If you are interested in the underlying scores, ratings or a more detailed score breakdown for any of the issuers mentioned, or the methodologies t...

Available Purchase Options: