International Breweries returns to profit after 7-year loss streak

International Breweries Plc returned to profitability in 2025 for the first time in seven years, as easing foreign-exchange pressures helped Nigeria’s second-largest brewer reverse losses that had long been driven more by currency shocks than beer demand.

The AB InBev-controlled company reported a profit after tax of N63.3 billion for the year ended December 2025, compared with a loss of N113.6 billion in 2024, according to its unaudited results seen on the Nigerian Exchange.

The turnaround comes as relative stability in the naira reduced the scale of foreign exchange losses that had repeatedly wiped out operating gains.

Revenue climbed 27 percent to N620.1 billion, supported by price increases, improved volumes, and a more predictable operating environment. Gross profit rose to N204.4 billion from N131.4 billion a year earlier, reflecting stronger sales despite elevated input costs.

The sharper shift, however, came below the operating line. In 2024, steep currency devaluations that saw the naira shed about 41 percent of its value and hedge revaluations produced over N113 billion in FX-related losses, pushing the brewer deeper into the red.

But with the naira posting a 7.5 percent gain last year for the first time in more than a decade, net FX losses narrowed sharply to N3.0 billion, helped by lower realised FX losses and unrealised FX gains of N6.5 billion, compared with heavy unrealised losses in the prior year.

That improvement helped lift profit before tax to N85.1 billion from a loss of N111.8 billion in 2024, even though costs remained a constraint. Cost of sales increased to N415.7 billion, driven by raw materials, energy, and logistics expenses. Administrative, marketing, and distribution costs also rose to N128.2 billion, reflecting inflationary pressures across the supply chain.

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Finance income provided additional support. Net finance income stood at N11.4 billion, compared with a net finance cost of N20.7 billion a year earlier, as interest expenses fell and borrowing was eliminated.

The company ended the year with no outstanding loans or overdrafts, avoiding high interest rates that had previously amplified losses.

Cash generation improved alongside earnings. Cash generated from operations reached N129.5 billion, funding N111.4 billion in capital expenditure on plants and equipment while lifting cash and cash equivalents to N155.7 billion, up from N109.2 billion in 2024.

The stronger performance also reduced accumulated losses. Retained losses narrowed to N178.6 billion, from N241.9 billion a year earlier, lifting total equity to N512.2 billion.

Still, the recovery remains closely tied to macroeconomic conditions. Input costs remain high, consumer spending is under pressure, and earnings remain sensitive to currency movements in an import-dependent brewing industry.

Despite recent profit gains, investors are still holding back, as shares of International Breweries have shed 6 percent over the past four weeks after gaining 170 percent a year ago.

Wasiu Alli

Wasiu Alli is a business, economics cum data journalist with strong expertise covering macro trends, capital markets, government policies, corporate earnings and comparative economics analysis. Alli turns raw data into trends that not only tells compelling stories but nudges investors to make valued and informed decisions. He’s an alumnus of Lagos State University and trained at Lagos Business School. He formerly heads the Companies and Markets desk at BusinessDay where he writes and supervises the production of well researched articles on earnings updates, corporate sectoral comparisons, market intelligence as well as interviews with C-suite executives.