Nigerian Breweries Plc has staged a major financial turnaround in the first quarter of 2025, posting a pre-tax profit of N69.9 billion, a remarkable recovery from a loss of N65.5 billion recorded during the same period in 2024.
This strong performance was largely driven by robust revenue growth and a dramatic reduction in foreign exchange losses, reflecting improved financial discipline and favourable macroeconomic conditions.
According to the company’s unaudited financial statements for the period ended March 31, 2025, net revenue rose by 68.91% to N383.6 billion, up from N227.1 billion recorded in Q1 2024. This was supported by increased product demand, pricing strategies, and market expansion.
Despite rising operational costs, gross profit soared by 103.43%, reaching N166.5 billion, compared to N81.8 billion in the corresponding quarter last year. This was achieved even as the cost of sales climbed by 49.45% to N217.06 billion.
Selling and distribution expenses also increased significantly, rising 47.20% to N66.2 billion, up from N45.01 billion in Q1 2024. Nonetheless, the company's operating profit surged by 237.48% to N85.2 billion, a clear indication of strong performance from its core business operations.
On the financial side, foreign exchange losses dropped sharply — from N72.8 billion in Q1 2024 to just N178.01 million in Q1 2025. This near elimination of forex losses was a critical factor in the company's swing back to profitability. Additionally, finance costs declined by 15.32% to N15.3 billion, while finance income rose by 86.65% to N264.4 million.
Here are key highlights from the Q1 2025 financials:
- Net Revenue: N383.6 billion (+68.91% YoY)
- Cost of Sales: N217.06 billion (+49.45% YoY)
- Gross Profit: N166.5 billion (+103.43% YoY)
- Selling & Distribution Expenses: N66.2 billion (+47.20% YoY)
- Operating Profit: N85.2 billion (+237.48% YoY)
- Foreign Exchange Losses: N178.01 million (-99.75% YoY)
- Finance Costs: N15.3 billion (-15.32% YoY)
- Pre-tax Profit: N69.9 billion (+206.72% YoY)
As of trading on April 17, 2025, shares of Nigerian Breweries are trading at N36.20, reflecting a 13.13% year-to-date gain, further underscoring investor confidence in the company's improving fundamentals.
With this promising start to 2025, Nigerian Breweries appears to be on a solid path to sustained profitability, following a challenging year marked by economic headwinds and currency fluctuations.