Nigerian Breweries swings back to profit as debt costs plunge

Nigerian Breweries Plc posted a net profit of N88.4 billion in the first half of 2025, reversing a N85.2 billion loss a year earlier, as the country’s largest brewer rode a sharp jump in sales and slashed finance costs after retiring its foreign currency debt.

Revenue surged 54 percent year-on-year to N738.1 billion, buoyed by stronger commercial execution, strategic pricing, and improved operational efficiency, the company said in a statement to the Nigerian Exchange on Tuesday.

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Operating profit soared nearly threefold to N151.9 billion, while net finance expenses fell 87 percent, from N154.5 billion to N19.7 billion, following the repayment of its FX liabilities using proceeds from a recent rights issue.

The performance marks a strong rebound from the losses sustained in 2024, which were largely driven by massive FX translation losses and a challenging macroeconomic environment.

The profit run began in the first quarter of this year, with analysts seeing the improving fundamentals, including the continued rally of the naira and disinflationary trend boosting the brewer’s net income.

“The performance in the first half of the year was driven by sustained innovation, strong commercial execution, optimising the right pricing strategies amidst rising input costs,” the company said in a separate statement on the NGX.

“Although the macroeconomic environment was reasonably stable, it was still characterised by high inflation and constrained disposable income.”

The company’s pre-tax profit stood at N132.2 billion, compared to a loss of N116.3 billion a year ago. Gross profit nearly doubled to N311 billion, underscoring improved margins despite elevated cost pressures. Basic earnings per share came in at 285 kobo, compared to a loss of 828 kobo in H1 2024.

The brewer, which includes the recently acquired Distell Wines and Spirits Nigeria Ltd in its group results, noted that the integration of this unit would further strengthen its product portfolio and drive long-term value creation.

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While management expects third-quarter volumes to moderate due to seasonality and ongoing pressure on household incomes, it says the focus remains on “cost optimisation, market execution, and brand equity.”

Nigerian Breweries’ return to profitability adds to a string of positive earnings surprises across the consumer goods sector in Nigeria this quarter, as firms benefit from price pass-throughs, improving FX conditions, and easing debt burdens.