Nigerian Breweries Plc has reported a pre-tax profit of N43.87 billion for the second quarter of 2025, marking a sharp reversal from the N33 billion pre-tax loss recorded in the same period last year.
The strong second-quarter showing boosted the company’s pre-tax profit for the first half of the year to N88.42 billion, compared to a pre-tax loss of N85.20 billion in H1 2024.
Second-quarter revenue climbed by 40.8 per cent year-on-year, reaching N354.51 billion from N251.76 billion in Q2 2024. This performance brought total revenue for the first half of 2025 to N738.14 billion, representing a 54 per cent year-on-year rise.
Gross profit surged by 86 per cent in Q2 to N144.43 billion, raising the gross margin to 41 per cent. The gain was largely due to a slower rise in cost of sales, which increased by 21 per cent to N210.08 billion, allowing the company to expand its margin despite inflationary pressures.
Improved profitability also followed more measured growth in operating expenses. Selling expenses rose 23 per cent to N64.41 billion, a deceleration compared to the 47 per cent spike seen in the first quarter. Administrative expenses climbed by only 5.3 per cent, significantly lower than the 39.7 per cent rise posted in Q1 2025. Credit impairment charges also declined.
As a result, operating profit soared to N66.63 billion in Q2, up 418 per cent year-on-year. For the first half of the year, operating profit reached N151.90 billion, more than twice the company’s full-year figure for 2024.
Finance costs dropped to N12.46 billion in Q2, down from N15.27 billion in Q1 2025 and N24.40 billion in Q2 2024. A foreign exchange gain further supported bottom-line performance.
On the balance sheet, total assets stood at N1.112 trillion, reflecting a 2.35 per cent year-on-year decline. Retained losses were significantly reduced to N82.47 billion from N169.80 billion as of December 2024. The improved earnings position helped lift total shareholders’ funds to N549.48 billion.
The company’s earnings report stated that “building on the strong momentum of Q1 2025, the Group recorded a 54 per cent increase in revenue, 298 per cent growth in operating profit, and 204 per cent growth in net profit in H1 2025.”
Management credited the performance to sustained innovation, stronger commercial delivery, better pricing strategies in the face of rising costs, tighter cost controls, and improved operational efficiencies. These, it said, reflect the company’s solid fundamentals and adaptability within a demanding operating climate.
Nigerian Breweries also benefited from strategic deployment of funds raised through its Rights Issue, which helped reduce debt and fully clear foreign currency-denominated liabilities. This resulted in an 87 per cent cut in net financing costs.
Looking ahead, the company expects moderate sales volumes in the months to come due to pressure on household incomes and seasonal trends typical of the third quarter. Management will continue to focus on cost control, improved execution in the marketplace, and boosting brand strength across its product lines.
The recent acquisition and full integration of Distell Wines and Spirits Nigeria Limited is also expected to enhance the company’s long-term value delivery for shareholders.
As of the close of trading on 29 July 2025, Nigerian Breweries’ share price stood at N74 per share, reflecting a year-to-date gain of 131 per cent on the Nigerian Exchange.
