After a turbulent prior year, Nigerian Breweries Plc (NB) has staged a strong comeback, posting a profit after tax of ₦44.55 billion in the first quarter of 2025. This marks a sharp reversal from the ₦52.09 billion loss recorded in Q1 of 2024 and corresponds to earnings per share (EPS) of ₦1.43, compared to a loss per share of ₦5.07 a year earlier.
The turnaround was largely driven by a 68.9% year-on-year surge in revenue. Strategic pricing, ongoing product innovation, and an enhanced product mix were key contributors to this growth. The company’s premium beer lineup—featuring brands like Heineken, Desperados, and Legend Stout—delivered standout performance during the period.
Gross profit margins improved significantly, rising by 737 basis points to 43.4%, even as the cost of sales increased by 49.5%. These improvements, combined with strong top-line growth, lifted both EBITDA and EBIT margins to 26.4% and 22.2% respectively, despite a 45.8% increase in operating expenses.
NB also benefited from a steep decline in net finance costs, which dropped by 83.2% to ₦15.27 billion from ₦90.85 billion in Q1-2024. A near-total reduction in foreign exchange losses—down by 99.8%—played a crucial role, aided by a more stable exchange rate and liquidity support from the company’s 2024 Rights Issue.
The brewer reported a pre-tax profit of ₦69.99 billion for the quarter, a complete turnaround from the ₦65.58 billion pre-tax loss posted in the same period last year. After accounting for tax expenses of ₦24.73 billion, NB’s bottom line remained solid.
Analyst Insight:
The Q1-2025 performance underscores the success of NB’s strategic reset initiated last year. The company has maintained momentum from the final quarter of 2024, leveraging improved operational efficiency and steady revenue inflows. The financial impact of reduced FX exposure—supported by the capital raise and a relatively calm currency market—has further strengthened its position.
As NB continues to integrate Distell’s operations and focus on streamlining processes, market watchers suggest the company is on a strong path to sustain growth through the remainder of 2025. Revenue and profit forecasts are currently under revision, with potential for upward revisions.
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