Nigerian Breweries Plc has announced a robust financial recovery for the second quarter ended June 30, 2025, reporting a pre-tax profit of N43.87 billion, a sharp turnaround from the pre-tax loss of N33 billion recorded in Q2 2024.
This strong quarterly performance contributed to a half-year (H1) pre-tax profit of N88.42 billion, in stark contrast to the N85.20 billion loss reported in the first half of 2024.
Revenue and Profit Surge in Q2
Revenue for Q2 2025 climbed 40.8% year-on-year to N354.51 billion, compared to N251.76 billion in the same period last year. For the half-year period, revenue totaled N738.14 billion, reflecting a 54% year-on-year growth.
Gross profit rose significantly by 86% to N144.43 billion, with the gross margin improving to 41%. This gain was attributed to slower growth in the cost of sales, which increased by 21% to N210.08 billion, compared to the higher pace of revenue growth.
The company also benefited from controlled growth in expenses and reduced credit impairment charges:
- Selling expenses increased by 23% to N64.41 billion, a more moderate rise compared to 47% in Q1 2025.
- Administrative expenses grew by just 5.3%, significantly lower than the 39.7% increase recorded in the previous quarter.
These factors contributed to an operating profit of N66.63 billion, representing a 418% year-on-year increase, and pushing H1 2025 operating profit to N151.90 billion—already more than double the full-year figure for 2024.
Reduced Financing Costs and FX Gains
Another major contributor to the improved bottom line was a decline in finance costs and gains from foreign exchange:
- Finance costs dropped to N12.46 billion in Q2 2025, down from N15.27 billion in Q1 and N24.40 billion in Q2 2024.
According to the company, this was aided by the strategic use of proceeds from its Rights Issue, which helped reduce debt exposure and eliminate foreign currency liabilities, cutting net financing costs by 87%.
Balance Sheet and Shareholders’ Value
Despite a slight decline in asset value, the company’s financial position remained strong:
- Total assets stood at N1.112 trillion, marking a 2.35% year-on-year decline.
- Retained losses were cut by over 50% to N82.47 billion, down from N169.80 billion as of December 2024.
- Shareholders’ funds rose to N549.48 billion, a significant improvement reflecting the profitability rebound.
Q2 2025 Financial Highlights (YoY):
- Revenue: N354.51 billion (+40.8%)
- Cost of Sales: N210.08 billion (+20.8%)
- Gross Profit: N144.43 billion (+85.6%)
- Operating Profit: N66.63 billion (+417.6%)
- Total Assets: N1.112 trillion (−2.35%)
In its earnings report, the company stated:
“Building on the strong momentum of Q1 2025, the Group recorded a 54% increase in revenue, 298% growth in operating profit, and 204% growth in net profit in H1 2025.”
Management credited the strong performance to ongoing innovation, pricing optimization, disciplined cost control, and improved operational efficiency—all of which underscore Nigerian Breweries’ adaptability in a volatile economic environment.
Outlook: Focused Execution Amid Macroeconomic Pressure
Looking ahead, the company projects moderate sales volumes in the coming months due to pressures on disposable incomes and seasonal trends typical of Q3. Its strategic focus will remain on cost efficiency, market expansion, and brand equity enhancement.
Furthermore, the recent full acquisition and integration of Distell Wines and Spirits Nigeria Limited is expected to strengthen the company’s portfolio and support long-term value creation for shareholders.
As of the market close on July 29, 2025, Nigerian Breweries’ share price stood at N74, marking a 131% year-to-date gain.
