Nigerian Breweries Plc, the country’s largest brewer, has reported a significant turnaround in its financial performance for the first half of 2025, swinging from a substantial loss to a robust profit.
The rebound was primarily driven by a reduction in finance costs, following strategic debt restructuring.
The company posted a profit after tax of N88.42 billion for the six months ended June 30, a stark contrast to the N85.20 billion loss recorded in the same period last year.
Revenue for the period surged by 54% to N738.14 billion, up from N479.77 billion in the first half of 2024. The top-line growth was supported by sustained innovation, strong commercial execution, and optimized pricing strategies, according to the company. Operating profit also saw a significant increase, growing by 298% to N151.90 billion.
The most impactful factor in the profit recovery was the 87% reduction in net finance expense, which plummeted to N19.65 billion from N154.48 billion in H1 2024. The sharp decline is directly attributed to the “prudent utilisation of the proceeds of the Rights Issue,” which was specifically used for overall debt reduction and the elimination of foreign currency-denominated debt. This move significantly de-risked the company’s balance sheet from currency volatility and high interest rates.
Basic Earnings Per Share (EPS) reflected this positive shift, climbing to 285 kobo from a loss of 828 kobo in the prior year.
Outlook
Looking ahead, Nigerian Breweries anticipates moderate sales volumes in the coming months due to continued pressure on disposable income and third-quarter seasonality. The company plans to maintain its focus on cost optimization, market execution, and strengthening brand equity. The full ownership and integration of Distell Wines and Spirits Nigeria Limited are also expected to bolster long-term value creation for shareholders.
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