Nigerian Breweries Plc has reported a major turnaround in its financial performance for the nine months ended September 30, 2025, recording a profit after tax (PAT) of ₦85.5 billion compared to a loss of ₦149.5 billion in the corresponding period of 2024.
This marks a significant 157% improvement year-on-year, underscoring the brewer’s successful recovery strategy and operational resilience amid macroeconomic headwinds.
Revenue Growth and Operational Recovery
Revenue rose sharply by 47% to ₦1.046 trillion from ₦710.9 billion in the same period last year, driven by stronger volumes, improved route-to-market efficiency, and sustained premiumization across the company’s product portfolio.
The premium brands, led by Heineken, Tiger, and Desperados, continued to outperform the mass market, providing robust margin support.
Gross profit surged 98% to ₦415.2 billion, reflecting both pricing actions and cost efficiency. The company’s cost of sales increased by 26% year-on-year, a slower pace relative to revenue growth, indicating successful cost management initiatives despite persistent inflation and currency depreciation pressures.
Margin and Profitability Performance
Operating profit jumped by 462%, rising from ₦29 billion in the previous year to ₦163.1 billion in 2025, supported by tighter expense control and supply chain efficiencies.
Operating margin expanded significantly from 4% in Q3 2024 to 16% in Q3 2025, demonstrating a stronger earnings leverage on revenue growth.
Net finance expense declined sharply by 85%, from ₦232 billion to ₦33.7 billion, reflecting reduced debt levels following the 2024 Rights Issue, which bolstered the company’s capital structure. This deleveraging effect was central to restoring profitability and improving cash flow position.
Consequently, Nigerian Breweries recorded a profit before tax of ₦129.5 billion, compared to a loss of ₦203 billion in 2024, while earnings per share (EPS) rebounded to ₦2.75 (275 kobo) from a loss of ₦14.55 per share last year.
Strategic Commentary
The board acknowledged that the strong Q3 performance was achieved despite continued high inflation and subdued consumer spending. Nigerian Breweries maintained market leadership by deepening its premium portfolio, enhancing competitiveness, and driving operational excellence.
Management noted that the integration of Distell Wines and Spirits Nigeria Limited, completed in 2024, contributed to improved revenue diversification but also incurred a one-off impairment charge during the quarter. This non-recurring cost temporarily weighed on Q3 performance but does not alter the company’s overall positive trajectory.
The brewer anticipates a seasonal rebound in Q4 2025, supported by festive demand, continuous cost optimization, and disciplined pricing.
The outlook for full-year 2025 remains positive as management continues to prioritize revenue growth and profitability restoration.
Financial and Market Implications
Nigerian Breweries’ return to profitability signals a strategic turnaround in Nigeria’s consumer goods sector, highlighting management’s ability to navigate inflationary pressures and exchange rate volatility.
The company’s performance is expected to boost investor confidence and potentially strengthen share price momentum on the Nigerian Exchange (NGX).
The brewer’s strategic focus on premiumization, debt reduction, and operational efficiency sets a positive precedent for sustained earnings growth in 2026, provided macroeconomic stability continues.
However, consumer purchasing power, foreign exchange availability, and excise tax adjustments remain key risks to monitor.
Outlook
With revenue exceeding the ₦1 trillion mark for the first time in nine months, Nigerian Breweries’ ongoing transformation and integration efforts are beginning to yield measurable results. Management’s forecast of a stronger Q4 performance aligns with historical consumption patterns and the company’s robust distribution network.
As the industry leader in Nigeria’s beverage sector, Nigerian Breweries is positioned to consolidate its dominance through portfolio innovation, sustainable cost structure, and digital route-to-market expansion.
Summary Table
| Metric (₦ million) | 9M 2025 | 9M 2024 | % Change |
|---|---|---|---|
| Revenue | 1,046,382 | 710,872 | +47.2% |
| Cost of Sales | (631,230) | (500,959) | +26.0% |
| Gross Profit | 415,152 | 209,912 | +97.8% |
| Operating Profit | 163,129 | 29,045 | +461.6% |
| Profit Before Tax | 129,473 | (202,999) | +163.8% |
| Profit After Tax | 85,507 | (149,501) | +157.2% |
| EPS (Kobo) | 275 | (1,455) | +118.9% |
Market Impact
Nigerian Breweries’ strong financial recovery in Q3 2025 demonstrates improving sector fundamentals and investor sentiment toward consumer goods stocks.
The rebound in profitability, combined with stable leverage, is expected to support renewed buying interest in NB shares and could positively influence the broader industrial goods segment of the NGX.
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