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.

[Dicobody]

http://www.nse.com.ng/Financial%20Ne...2unaudited.pdf

[nosa2]

Originally Posted by Dicobody

http://www.nse.com.ng/Financial%20Ne...2unaudited.pdf

This result has just thrown a spanner into my investment plans for the year. anyway make I digest the result first

[horlads]

Originally Posted by Dicobody

http://www.nse.com.ng/Financial%20Ne...2unaudited.pdf

Originally Posted by nosa2

This result has just thrown a spanner into my investment plans for the year. anyway make I digest the result first

They are way behind the forecasts they made when they were doing rights issue...

[nosa2]

Originally Posted by horlads

They are way behind the forecasts they made when they were doing rights issue...

I don't look at forecasts so weather they meet targets or not is irrelevant to me, anyway I've downloaded the result and would go thru in details later in the evening.

[Dicobody]

Originally Posted by nosa2

This result has just thrown a spanner into my investment plans for the year. anyway make I digest the result first

help us digest and post ur findings sir

[xplicitiyke]

INTERNATIONAL BREWERIES PLC

June 08, 2012

Unaudited Results (March, 2012, Q1)
Statement of Comprehensive Income
Turnover 31/03/2012 N2.879b 31/03/2011 N2.378b Audited 11 N9.908b
Cost of Sales 12 (N1.534b) 11 (N1.290b) Audited 11 (N6.785b)
Gross Profit 12 N1.345b 11 N1.088b Audited 11 N3.123b
Admin, Marketing & Promotional Expenses 12 (N1.002b) 11 (N422.183m) Audited 11 (N2.715b)
Operating Profit 12 N342.767m 11 N665.529m Audited 11 N407.860m
Other Income 12 N52.625m 11 N766,000 Audited 11 N312.043m
Other Gains & Losses 12 N5.116m 11 (N642.390m) Audited 11 (N487.546m)
Profit before Finance Income & Charges 12 N400.508m 11 N23.905m Audited 11 N232.357m
Net Finance Costs 12 (N13.050m) 11 (N16.473m) Audited 11 (N65.686m)
Profit before Tax 12 N387.491m 11 N7.432m Audited 11 N190.340m
Taxation 12 Nil 11 Nil Audited 11 (N42.993m)
Profit after Tax 12 N387.491m 11 N7.432m Audited 11 N147.347m

Statement of Financial Position
Property, Plant & Equipment 31-03-12 N10.104b 31-12-11 N9.670b
Intangible Assets 12 N28.893m 11 N33.020m
Investment in Associates 12 N1.000m 11 N1.000m
Inventories 12 N1.706b 11 N1.636b
Trade & Other Receivables 12 N1.163b 11 N1.092b
Cash and Bank Balances 12 N192.063m 11 N318.349m
Other Non-Current Assets 12 N3.016b 11 N2.983b
Trade & Other Payables 12 N7.210b 11 N2.536b
Short term Borrowings 12 N1.883b 11 N7.589b
Current Tax Liabilities 12 N42.993m 11 N42.993m
Non-Current Liabilities 12 N2.532b 11 N8.285b
Working Capital 12 (N6.075b) 11 (N7.121b)
Net Assets 12 N4.543b 11 N4.198b

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

[phemmie06]

Is there any one in the house that can tell me the outcome of the just concluded AGM. Thanks

[Salida]

Sabmiller starts production in Onitsha next month

[knightofdelta]

Originally Posted by Salida

Sabmiller starts production in Onitsha next month

Sir Bivins, I hope you dey see wetin I dey see so.

[bivins1]

Originally Posted by knightofdelta

Sir Bivins, I hope you dey see wetin I dey see so.

All correct sir .

[goldsun]

Originally Posted by knightofdelta

Sir Bivins, I hope you dey see wetin I dey see so.

what is the relationship between Sabmiller and international brewery

[Salida]

Originally Posted by knightofdelta

The interest rate on over 90% of the loan the loan is about 8% and it is a dollar denominated loan. They marked the loan to market in 2011, which was what led to the initial losses the company experienced as the Naira depreciated. The loan belongs to Brauhaase, a joint venture between SABMiller and Castel Group. Brauhaase owns 65% of International breweries and they are in the process of consolidating the company with some other ones in Nigeria to give NB and Guinness a run for their money. I have argued with some members on this before and they believed that I must have been high on something when I said IB was a stock to watch because they were of the opinion that IB was not going to have any impact on the market share of the two giants.

In 2011 in response to the threat of IB, Guinness increased capacity and NB went on a buying spree of moribund brewers. Despite that we see the kind of numbers that IB is churning out. Oracle went as far as saying that the management of IB was milking the company, that was why they were running into losses... Okay now!

As for me, I now have a holding period of 28.5 years for IB and if you decide to join me, you can thank me later because some of the information in this post is something you will never find anywhere, not even from the majority of IB workers.

Originally Posted by goldsun

what is the relationship between Sabmiller and international brewery

Sir Goldsun, you can find the answer from an earlier post by Sir KOD.