Nigerian Breweries Plc posted a pre-tax profit of N161.06 billion for the 2025 financial year, reversing a N182.9 billion loss recorded in 2024, as revenue surged and finance costs eased.
Full-year revenue rose 35.32% year-on-year to N1.467 trillion from N1.08 trillion, with Nigerian sales accounting for 99.83% of total volume. The strong domestic contribution underpinned the brewer’s top-line recovery in a year marked by relative currency stability and operational recalibration.
The return to profitability was supported by a sharp reduction in foreign exchange losses and lower expected credit losses on financial assets, strengthening the company’s earnings profile. Earnings per share improved to N3.19 from a negative N1.21 in 2024.
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Margin Expansion and Cost Dynamics Drive Turnaround
Gross profit climbed 76.67% to N565.1 billion from N319.9 billion in 2024, after cost of sales settled at N902.2 billion. The expansion in gross margin indicates improved pricing power, product mix optimization, and tighter cost management compared to the prior year, when foreign exchange volatility and input cost pressures weighed heavily on margins.
Local sales of brewed products accounted for N1.464 trillion of total revenue, while export sales contributed N2.4 billion, highlighting the company’s continued reliance on the domestic market.
Other income stood at N4.1 billion, largely from scrap sales and gains on disposal of property, plant, and equipment.
Operating expenses rose in nominal terms. Selling and distribution costs increased 37.24% to N278.9 billion, reflecting higher logistics and marketing spend in a competitive consumer goods environment. Administrative expenses climbed 77.21% to N82.8 billion.
Expected credit losses declined to N2.3 billion from N4.05 billion in 2024, easing pressure on operating performance. Operating profit consequently rose 194% to N205.1 billion from N69.89 billion.
Finance income came in at N1.7 billion, while finance costs dropped significantly to N45.9 billion, largely due to lower foreign exchange losses. The moderation in FX-related charges marks a critical shift from 2024, when currency devaluation materially impacted the company’s bottom line.
After accounting for N61.9 billion in income tax, profit after tax reached N99.1 billion, compared with a N144.8 billion loss in the previous year.
Stronger Balance Sheet and Reduced Leverage
Total assets stood at N1.06 trillion, with property, plant, and equipment accounting for N585.3 billion, reflecting the capital-intensive nature of brewing operations.
Total equity rose 21% year-on-year to N560.22 billion from N463.9 billion, while the accumulated deficit narrowed to N72.1 billion from N169.7 billion, indicating gradual balance sheet repair.
Total liabilities declined to N505.8 billion from N674.3 billion, driven largely by a reduction in loans and borrowings to N59.71 billion from N169 billion in 2024. The significant deleveraging reduces interest burden and improves financial flexibility, positioning the company for more stable operations in 2026.
The improvement in equity and lower debt levels suggests enhanced solvency metrics and reduced refinancing risk, particularly important in Nigeria’s high-interest-rate environment.
Market Reaction and Outlook
As of mid-trading on 13 February 2026, the market had yet to fully react to the results, with the stock down 0.43% on the day. Month-to-date, shares were up more than 2% on the Nigerian Exchange, trading at N80, while year-to-date gains exceeded 7%.
The muted immediate response may reflect broader market conditions rather than company-specific fundamentals. However, analysts are likely to focus on the sustainability of margin gains, the trajectory of input costs, and the stability of the naira in assessing forward earnings.
The 2025 performance signals a structural recovery from the FX-driven losses of 2024. If cost controls hold and domestic demand remains resilient, analysts expect Nigerian Breweries to consolidate its profitability and rebuild shareholder value in the current fiscal year.