Nigeria’s biggest brewer returns to profit after two years of losses

Nigerian Breweries Plc swung back to profit in 2025, capping a year of financial repair for the country’s largest brewer after currency shocks and surging finance costs pushed it into losses for two consecutive years.

Net income stood at N99.1 billion for the year ended December 31, compared with a N145.0 billion loss in 2024, according to its audited results. Revenue rose 35 percent to a record N1.47 trillion, while operating profit climbed almost threefold to N205.2 billion.

The rebound reflects a combination of price increases, cost discipline and sharply lower finance charges following a 2024 rights issue that reduced foreign-currency exposure. Net finance costs fell 83 percent, helping profit before tax reach N161.1 billion, from a loss of N183.0 billion a year earlier.

The brewer, majority owned by HEINEKEN N.V., was among the consumer-goods companies hit hardest by Nigeria’s 2023 currency devaluation, which inflated the naira value of dollar-denominated obligations and drove up input costs. The company reported steep losses in 2023 and 2024 as exchange-rate volatility and higher borrowing costs eroded margins.

In 2025, however, improved pricing and operating efficiencies lifted margins. Results from operating activities increased 194 percent year-on-year, signaling that the turnaround was driven largely by core business performance rather than one-off items.

Still, the recovery remains incomplete. Retained earnings are negative after accumulated losses, and the board did not recommend a dividend for the year, in line with regulatory requirements that past losses be fully offset before profit distribution. No dividend was paid in 2024.

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Shares of Nigerian Breweries more than doubled in 2025, closing at N75.3 compared with N32 a year earlier. Market capitalisation rose to about N2.33 trillion, underscoring renewed investor confidence in the company’s balance-sheet repair.

A key pillar of the strategy has been diversification. In 2025, the brewer completed the acquisition and full integration of Distell Wines and Spirits Nigeria, expanding its portfolio beyond beer and malt drinks into wines, spirits and ciders. The move positions the company as a broader beverage player at a time when weak consumer purchasing power has pressured beer volumes across the industry.

Interest coverage improved to 4.47 times from 0.69 times a year earlier, reflecting stronger operating earnings and lower finance costs. Total equity rose 21 percent to N560.2 billion.

The results also come amid leadership changes. Thibaut Boidin assumed the role of managing director in July, part of a management reset following two turbulent years marked by macroeconomic instability and restructuring.

For 2026, analysts will watch whether the brewer can sustain margin gains in a high-inflation environment and gradually rebuild retained earnings to resume dividend payments.