International Breweries Plc

[knightofdelta]

Originally Posted by hispy99

I still don't see how this will happen. They will remain a distant 3rd place in the market because NB and Guinness are not sleeping. Are their products better than those offered by NB or Guinness? Does Castle stout have a better name recognition than Guinness Stout? Even NB has had difficulty taking significant market share from Guinness with its own brand of stout.

That does not mean that IB is not a great investment. They just have to figure out how to position their products, but in term of them taking significant market share from NB or Guinness, I do not see it.

It is not really about taking market share from NB and Guinness. I actually did an indepth research of IB a few months ago and what I saw was just massive opportunities all over the place. One tip: IB is struggling to meet up with demand despite the fact that people in Lagos and PH are not drinking it. Where is the demand coming from? I no go talk more than that.

[hispy99]

Originally Posted by knightofdelta

It is not really about taking market share from NB and Guinness. I actually did an indepth research of IB a few months ago and what I saw was just massive opportunities all over the place. One tip: IB is struggling to meet up with demand despite the fact that people in Lagos and PH are not drinking it. Where is the demand coming from? I no go talk more than that.

Of course the market is expanding and most likely if they offer lower prices than NB, they will be able to drive increased demand in that segment of the market. It's all about how they position their products.

[Salida]

INTBREW forecasts N714.1m PAT

[omowilly]

RESULT ANNOUNCEMENT
INTERNATIONAL BREWERIES PLC
April 13th 2012
Audited Results (Dec, 2011)
Profit and Loss Information
Turnover 31-121-11 N9.908b 31-12-10 N4.794b Cost of Sales 11 (N6.785b) 10 (N3.030b) Marketing, Promotion & Admin Expenses 11 (N2.715b) 10 (N1.494b) Other Income 11 N335.712m 10 N8.928m Interest & Similar Charges 11 (N65.686m) 10 (N79.431m) Exchange Loss 11 (N487.546m) 10 Nil Profit before Tax 11 N190.340m 10 N199.133m Taxation 11 (N42.993m) 10 Nil Profit after Tax 11 N147.347m 10 N199.133m
Balance Sheet Information
Fixed Assets 31-12-11 N8.139b 31-12-10 N6.754b Trade Investments 11 N1m 10 N1m Stocks 11 N1.636b 10 N1.679b Trade Debtors 11 N565.631m 10 N328.380m Cash and Bank Balances 11 N318.349m 10 N209.283m Other Debit Balances 11 N2.178b 10 N938.829m Trade Creditors 11 N1.470b 10 N629.192b Short term Borrowings 11 N73.294m 10 N225.600m Other Credit Balances 11 N9.993b 10 N9.141b Working Capital 11 (N5.501b) 10 N684.593m Net Assets 11 N1.302b 10 (N84.221m)
Corporate Actions
Proposed Dividend
Nil
Proposed Bonus
Qualification Date
Nil
Nil
Closure Date
Nil
AGM Date
Nil
Payment Date
Nil
AGM Venue
Nil
Notes

[cashrules]

Originally Posted by omowilly

RESULT ANNOUNCEMENT
INTERNATIONAL BREWERIES PLC
April 13th 2012
Audited Results (Dec, 2011)
Profit and Loss Information
Turnover 31-121-11 N9.908b 31-12-10 N4.794b
Cost of Sales 11 (N6.785b) 10 (N3.030b)
Marketing, Promotion & Admin Expenses 11 (N2.715b) 10 (N1.494b)
Other Income 11 N335.712m 10 N8.928m Interest & Similar Charges 11 (N65.686m) 10 (N79.431m)
Exchange Loss 11 (N487.546m) 10 Nil
Profit before Tax 11 N190.340m 10 N199.133m
Taxation 11 (N42.993m) 10 Nil
Profit after Tax 11 N147.347m 10 N199.133m

Balance Sheet Information
Fixed Assets 31-12-11 N8.139b 31-12-10 N6.754b
Trade Investments 11 N1m 10 N1m
Stocks 11 N1.636b 10 N1.679b
Trade Debtors 11 N565.631m 10 N328.380m
Cash and Bank Balances 11 N318.349m 10 N209.283m
Other Debit Balances 11 N2.178b 10 N938.829m
Trade Creditors 11 N1.470b 10 N629.192b
Short term Borrowings 11 N73.294m 10 N225.600m
Other Credit Balances 11 N9.993b 10 N9.141b
Working Capital 11 (N5.501b) 10 N684.593m
Net Assets 11 N1.302b 10 (N84.221m)

Corporate Actions
Proposed Dividend
Nil
Proposed Bonus
Qualification Date
Nil
Nil
Closure Date
Nil
AGM Date
Nil
Payment Date
Nil
AGM Venue
Nil
Notes

Oga KOD... e be like say wayo don dey enter this people head o!!!

See the massive leap in cost of sales and marketing and promotion cost... na for how how many years this kind tin go continue?

Meanwhile I can now see Exchange loss in their books....na from the devaluation of naira abi? why cant they just take loan from Stanbic that laready has too much capital to play with or try hedging this foreign exchange risk with a CDS......

This result even with more than 100% growth in turnover no just be am!!

[knightofdelta]

Originally Posted by cashrules

Oga KOD... e be like say wayo don dey enter this people head o!!!

See the massive leap in cost of sales and marketing and promotion cost... na for how how many years this kind tin go continue?

Meanwhile I can now see Exchange loss in their books....na from the devaluation of naira abi? why cant they just take loan from Stanbic that laready has too much capital to play with or try hedging this foreign exchange risk with a CDS......

This result even with more than 100% growth in turnover no just be am!!

The exchange loss is just a one off thing that ended up affecting the bottomline. I did a serious research on this company late 2011 and I knew this was going to happen. . It might interest you to know that the net assets have turned from negative to over a billion naira. Also note the growth in fixed assets and the massive drop in short term borrowings in this era of high interest rates.

By the way, this stock is not for dividend seeking investors. It is for those who are willing to hold for the long term. The less interest in the stock the better for me so I can keep buying.

[BigSeun]

Originally Posted by cashrules

Oga KOD... e be like say wayo don dey enter this people head o!!!

See the massive leap in cost of sales and marketing and promotion cost... na for how how many years this kind tin go continue?

Meanwhile I can now see Exchange loss in their books....na from the devaluation of naira abi? why cant they just take loan from Stanbic that already has too much capital to play with or try hedging this foreign exchange risk with a CDS......

This result even with more than 100% growth in turnover no just be am!!

Contrary to your view, i feel it is a wonderful result. The growth in turnover is almost 100% and this explain why the increase in cost of sales and increase in advertising cost. As the products get known in the market, the mgt will cut down on the advert.
Loss arising from FX is a one-off expense that might not reoccur in this financial year. I foresee a far better performance in 2012.
Just like KoD, the company is definitely on my long term investment, wish to get more at below 5

[duduspace]

Originally Posted by BigSeun

Contrary to your view, i feel it is a wonderful result.
Just like KoD, the company is definitely on my long term investment, wish to get more at below 5

The bolded is what I've been waiting for, but I've been waiting a while now that I might readjust my valuation to 5:50 as it seems it might not get there.