Nigerian Breweries Plc says it is prioritising local currency funding and aggressively reducing foreign exchange exposure after the naira volatility of the last two years exposed major vulnerabilities in corporate balance sheets.
The brewer said the foreign exchange shock of 2023 and 2024 fundamentally reshaped its treasury and funding strategy, forcing a rethink of how the company manages debt and operational costs.
“Following the FX volatility experienced in recent years, we have materially recalibrated our approach to foreign currency exposure,” the company said in an exclusive statement responding to BusinessDay enquiries.
The brewer disclosed that its preference is now for local currency funding “to minimise exposure to exchange rate volatility,” adding that it has substantially eliminated foreign currency obligations as part of a broader balance sheet restructuring programme.
According to the company, the restructuring significantly reduced net finance costs in the 2025 financial year and contributed to its return to profitability.
“The significant reduction in net finance costs in FY 2025 reflects deliberate balance sheet restructuring, including the substantial elimination of foreign currency obligations and a more disciplined capital management framework,” the statement said.
Nigerian Breweries also said it has fully paid off its foreign loans and is intentionally reducing FX-dependent costs while deepening localisation across its operations. Already, the 2026 first quarter results show a return to profitability with a 25.6 percent increase in Profit After Tax.
The company noted that the recovery seen in 2025 is not merely cyclical, but driven by structural adjustments aimed at improving resilience during macroeconomic shocks.
Among the factors supporting the recovery are reduced FX exposure, enhanced revenue management capabilities, stronger cost efficiency measures, and the deleveraging of its balance sheet.
“We are structurally managing our FX risk. We have paid our foreign loan and are intentionally reducing our FX-dependent costs,” the company stated.
As it approaches its 80th anniversary, the brewer said its focus is on maintaining a moderate and flexible leverage profile aligned with cash flow generation capacity, rather than pursuing a fixed debt-to-equity target.
The company added that stronger liquidity buffers and a localisation drive now provide “greater earnings visibility and stability” in an increasingly volatile operating environment.
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