INTERNATIONAL BREWERIES : QUARTER 3 - FINANCIAL STATEMENT FOR 2023

International Breweries Plc

Unaudited Condensed Financial Statements for the 3 months ended 30th September 2023

International Breweries Plc Unaudited Condensed Financial Statements for the 3 months ended 30th September 2023 Contents

Certification of financial statements	2
Statement of directors' responsibilities	3
Statement of profit or loss	4
Statement of other comprehensive income	5
Statement of financial position	6
Statement of changes in equity	7
Statement of cash flows	8
Notes to the financial statements	9

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International Breweries Plc

Unaudited Condensed Financial Statements for the 3 months ended 30th September 2023

Certification of the unaudited condensed financial statements

Futher to the provisions of section 405 of the Companies and Allied Matters Act, 2020, we the Managing Director/CEO and Finance Director of International Breweries Plc ("the company") respectively hereby certify as follows:

1. That we have reviewed the Unaudited condensed financial statements of the company for the period ended 30th September 2023.
2. That the Unaudited condensed financial statements represents the true and correct financial position of our company as at the said date of 30th September 2023.
3. That the Unaudited condensed financial statements does not contain any untrue statement of material fact or omit to state a material fact, which would make the statement misleading.
4. That the Unaudited condensed financial statements fairly presents, in all material respects, the financial condition and results of operation of the company as of and for the period ended 30th September, 2023.
5. That we are responsible for establishing and maintaining internal controls and affirm that the company's internal controls were effective as of 30th September, 2023.
6. That all significant deficiencies in the design or operation of internal controls which could adversely affect the company's ability to record, process, summarise and report financial data have been disclosed to the independent Auditor and the Audit Committee.
   Signed

Mr. Carlos Countino	Mr. David Tomlinson	Mr. Echezona Ifewulu
Managing Director	Director	Head of Financial Control
FRC/2023/PRO/DIR/003/877967	FRC/2023/PRO/DIR/003/147669	FRC/2021/002/00000025092
25 October, 2023	25 October, 2023	25 October, 2023

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International Breweries Plc

Unaudited Condensed Financial Statements for the 3 months ended 30th September 2023 Statement of directors' responsibilities

The Companies and Allied Matters Act requires the directors to prepare financial statements for each financial year that give a true and fair view of the state of financial affairs of the Company at the end of the year and of its profit or loss. The responsibility includes:

1. ensuring that the Company keeps proper accounting records that disclose, with reasonable accuracy, the financial position of the Company and comply with the requirements of the Companies and Allied Matters Act;
2. designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatements, whether due to fraud or error; and
3. preparing the Company's financial statements using suitable accounting policies supported by reasonable and prudent judgements and estimates that are consistently applied.

The directors accept responsibility for the unaudited condensed quartely financial statements, which have been prepared using appropriate accounting policies supported by reasonable and prudent judgements and estimates, in conformity with International Financial Reporting Standards and the requirements of the Companies and Allied Matters Act.

Nothing has come to the attention of the directors to indicate that the Company will not remain a going concern for at least twelve months from the date of this statement.

HRM Nnaemeka Alfred Achebe, CFR,MNI	Mr. David Tomlinson	Mr. Carlos Countino
Chairman	Director	Managing Director
FRC/2013/NIM/00000001568	FRC/2023/PRO/DIR/003/147669	FRC/2023/PRO/DIR/003/877967
25 October, 2023	25 October, 2023	25 October, 2023

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International Breweries Plc

Unaudited Condensed Financial Statements for the 3 months ended 30th September 2023 Statement of profit or loss

	Note
Revenue	3
Cost of sales	4
Gross profit
Administrative, Marketing and promotion expenses	4
Impairment charge on financial assets
Other expense	5
Finance income	6
Finance cost	6
Finance costs - net
(Loss)/Profit before tax
Income tax credit/(charge)
(Loss)/Profit for the period
Basic and diluted (loss)/earnings per share (Naira)	13

The notes on pages 9 to 12 are an integral part of these financial statements.

3 Months	9 Months	3 Months	9 Months
July - Sept	Jan - Sept	July - Sept	Jan - Sept
30 Sept 2023	30 Sept 2023	30 Sept 2022	30 Sept 2022
N'000	N'000	N'000	N'000
67,648,154	183,779,116	49,028,127	160,431,716
(53,013,576)	(145,127,259)	(38,674,055)	(123,155,132)
14,634,578	38,651,857	10,354,072	37,276,584
(12,035,837)	(34,708,957)	(12,639,545)	(31,677,632)
(11,622)	(167,607)	(334,080)	(410,571)
(287,867)	(36,182,477)	(1,325,130)	(3,725,147)
2,299,252	(32,407,184)	(3,944,683)	1,463,233
2,457,314	8,886,723	595,981	2,794,599
(6,828,497)	(19,997,466)	(1,323,935)	(7,106,103)
(4,371,183)	(11,110,742)	(727,954)	(4,311,504)
(2,071,931)	(43,517,926)	(4,672,638)	(2,848,271)
(2,875,095)	14,964,791	1,526,996	38,829
(4,947,026)	(28,553,135)	(3,145,642)	(2,809,442)
(0.18)	(1.06)	(0.12)	(0.10)

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International Breweries Plc

Unaudited Condensed Financial Statements for the 3 months ended 30th September 2023 Statement of other comprehensive income

(Loss)/Profit for the period

Other comprehensive income:

Items that will be subsequently reclassified to profit or loss: Change in fair value of hedging instrument recognised in OCI

Other comprehensive income for the period

Total comprehensive (loss) / income for the period

Basic and diluted (loss)/earnings per share (Naira)

The notes on pages 9 to 12 are an integral part of these financial statements.

3 Months	9 Months	3 Months	9 Months
July - Sept	Jan - Sept	July - Sept	Jan - Sept
30 Sept 2023	30 Sept 2023	30 Sept 2022	30 Sept 2022
N'000	N'000	N'000	N'000
(4,947,026)	(28,553,135)	(3,145,642)	(2,809,442)
25,481,651	26,374,604	925,558	3,304,228
25,481,651	26,374,604	925,558	3,304,228
20,534,625	(2,178,531)	(2,220,083)	494,787
(0.18)	(1.06)	(0.12)	(0.10)

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International Breweries Plc

Unaudited Condensed Financial Statements for the 3 months ended 30th September 2023 Statement of financial position

		30 September	31 December
		2023	2022
	Note
ASSETS		N'000	N'000
Non-current assets
Deferred tax assets		49,310,615	32,613,306
Property, plant and equipment		257,421,005	252,071,523
Right of use assets		12,217,649	15,989,425
Intangible assets		3,015,623	3,251,367
		321,964,892	303,925,621
Current assets
Investment securities		62,471,970	86,213,956
Inventories		42,286,980	26,914,401
Derivative financial instruments		131,978,155	8,683,594
Trade and other receivables		15,951,432	22,489,101
Restricted cash	9	10,440,729	7,193,352
Cash and cash equivalents	9	17,449,271	28,831,715
		280,578,537	180,326,119
Total assets		602,543,430	484,251,740
LIABILITIES
Non-current liabilities
Employee benefit obligations		2,668,522	2,604,539
Borrowings		320,209,110	143,032,695
Lease liabilities		9,910,336	10,442,752
		332,787,968	156,079,986
Current liabilities
Current tax liabilities		2,369,594	2,257,913
Trade and other payables		150,191,188	151,566,984
Borrowings		-	51,051,507
Lease liabilities		2,042,777	5,964,917
		154,603,560	210,841,321
Total liabilities		487,391,528	366,921,307
EQUITY
Share capital		13,431,034	13,431,034
Share premium		159,803,396	159,803,396
Other reserves		1,360,756	1,360,756
Cash flow hedge reserve		27,642,744	1,268,140
Employee benefit reserves		(227,281)	(227,281)
Retained losses		(86,858,747)	(58,305,612)
Total equity		115,151,902	117,330,433
Total equity and liabilities		602,543,430	484,251,740

The notes on pages 9 to 12 are an integral part of these financial statements.

The financial statements on pages 4 to 12 were approved and authorised for issue by the board of Directors on 25 October 2023 and were signed on its behalf by:

HRM Nnaemeka Alfred Achebe, CFR,MNI (Chairman) FRC/2013/NIM/00000001568

Mr. Carlos Countino (Director) FRC/2023/PRO/DIR/003/877967

Mr. David Tomlinson (Director) FRC/2023/PRO/DIR/003/147669

Mr. Echezona Ifewulu (Head of Financial Control) FRC/2021/02/00000025092

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International Breweries Plc

Unaudited Condensed Financial Statements for the 3 months ended 30th September 2023

Statement of changes in equity

					Employee	Retained
	Share	Share	Other	Cash flow hedge	benefit	(losses)/	Total
	capital	Premium	reserves	reserve	reserves	earnings	equity
	N'000	N'000	N'000	N'000	N'000	N'000	N'000
At 1 January 2023	13,431,034	159,803,396	1,360,756	1,268,140	(227,281)	(58,305,612)	117,330,433
(Loss)/Profit for the period	-	-	-	-	-	(28,553,135)	(28,553,135)
Other comprehensive income	-	-	-	26,374,604	-	-	26,374,604
Total comprehensive (loss)/income for the
period	-	-	-	26,374,604	-	(28,553,135)	(2,178,531)
Balance at 30 September 2023	13,431,034	159,803,396	1,360,756	27,642,744	(227,281)	(86,858,747)	115,151,902

The notes on pages 9 to 12 are an integral part of these financial statements.

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International Breweries Plc Unaudited Condensed Financial Statements for the 3 months ended 30th September 2023 Statement of cash flows

		30 September	30 September
		2023	2022
	Note	N'000	N'000
Cash flows from operating activities
Cash generated from operations	14	10,840,226	26,154,657
Income tax paid		(1,214,253)	(215,370)
Employee benefits paid		(252,310)	-
Net cash (outflow)/inflow from operating activities		9,373,663	25,939,287
Cash flows from investing activities
Acquisition of property, plant and equipment		(29,303,379)	(35,126,069)
Investment in debt securities		23,741,986	37,457,727
Interest received	6	8,886,723	2,794,599
Net cash (outflow)/inflow from investing activities		3,325,330	5,126,256
Cash flows from financing activities
Proceeds/(Repayment) from/of borrowings		(7,753,978)	(62,320,000)
Lease payment		(7,610,184)	(5,774,796)
Interest paid		(5,469,899)	(4,921,146)
Net cash inflow/(outflow) from financing activities		(20,834,060)	(73,015,942)
Net (decrease)/increase in cash and cash equivalents		(8,135,067)	(41,950,399)
Cash and cash equivalents at the beginning of the period		36,025,067	66,802,029
Cash and cash equivalents at the end of the period	9
27,890,000	24,851,630

The notes on pages 9 to 12 are an integral part of these financial statements.

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International Breweries Plc Annual report and financial statements

for the 3 months ended 30th September 2023 Notes to the financial statements

1. General information
   These financial statements are the financial statements of International Breweries Plc ("the Company"). The Company was incorporated in Nigeria as a private limited liability company on 22 December 1971 under the Companies and Allied Matters Act, and is domiciled in Nigeria. The Company became a public limited liability company on 26 April, 1994.
   The address of its registered office is: Plot 5A Abuja Street, Banana Island, Ikoyi,
   Lagos, Nigeria
   The principal activities of the Company are brewing, packaging and marketing of beer, alcoholic flavoured/ non-alcoholic beverages and soft drinks. The parent company is AB InBev Nigeria Holdings BV, the ultimate parent company is Anheuser-Busch InBev SA/NV.
2. Summary of accounting policies

1. Introduction to summary of significant accounting policies
   The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
2. Basis of preparation

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The condensed financial statements for the period ended 30 June 2023 have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). Additional information required by national regulations is included where appropriate. They do not include all the information required for a full annual financial statements, and should be read in combination with the year end financial statement of International Breweries Plc for the year ended 31st December, 2022.

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All values are rounded to the nearest thousand, except when otherwise indicated. The financial statements are presented in thousands of Naira.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company's accounting policies. Changes in assumptions may have a significant impact on the financial statements in the period the assumptions changed. Management believes that the underlying assumptions are appropriate and that the Company's financial statements therefore present the financial position and results fairly.

1. Going concern
   The financial statements have been prepared on a going concern basis. The directors have no doubt that the company will be in existence after 12 months from the reporting date. The directors do not intend to cease operations or stop any of the production lines.
2. Changes in accounting policy and disclosures
   The Company has applied the accounting policies in these condensed financial statements consistently with those applied in the financial statements for the year ended 31st December 2022. No new accounting policy in the period under review has significant impact on the financial statements that require disclosure.

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