Nigerian Breweries Plc has recorded a remarkable financial recovery in Q2 2025, posting a pre-tax profit of N43.87 billion, a significant turnaround from the N33 billion loss reported in the same period last year.
According to the company’s unaudited financial results, this performance pushed its H1 2025 pre-tax profit to N88.42 billion, compared to a loss of N85.20 billion in H1 2024. The turnaround was largely driven by strong revenue growth, better cost management, and improved operational efficiencies.
Revenue for Q2 2025 rose 40.8% year-on-year to N354.51 billion, up from N251.76 billion in Q2 2024. This brought the company’s H1 2025 revenue to N738.14 billion, reflecting a 54% year-on-year increase. The company’s gross profit for Q2 rose 86% to N144.43 billion, lifting gross margin to 41%. This improvement came as cost of sales grew at a slower pace up 21% to N210.08 billion.
Operating profit surged by 418% year-on-year to N66.63 billion in Q2, pushing H1 operating profit to N151.90 billion more than double the company’s full-year 2024 figure.
Cost Controls and Foreign Exchange Gains
The brewery giant’s improved profitability was also supported by controlled spending. Selling expenses rose by 23% to N64.41 billion, while administrative expenses increased by just 5.3%, a significant drop from the 39.7% growth recorded in Q1 2025. Additionally, credit impairment charges declined, and finance costs fell to N12.46 billion from N24.40 billion in Q2 2024.
The company also recorded a significant foreign exchange gain, aided by the elimination of foreign-currency debt using proceeds from its Rights Issue, which contributed to an 87% reduction in net financing costs.
Despite the overall positive performance, Nigerian Breweries’ total assets stood at N1.112 trillion—a slight 2.35% year-on-year decline. However, the brewery cut its retained losses by more than 50%, dropping from N169.80 billion in December 2024 to N82.47 billion. This helped boost total shareholders’ funds to N549.48 billion.
As of July 29, 2025, the company’s share price stood at N74, reflecting a 131% year-to-date gain one of the best performances on the Nigerian Exchange this year.
9am News report reveals that the company attributed the stellar results to “sustained innovation, strong commercial execution, optimized pricing, and enhanced operational efficiencies.” These factors underscore Nigerian Breweries’ strong fundamentals and agility in navigating a volatile economy.
Despite its strong H1 performance, the company anticipates moderate sales in Q3 due to seasonality and ongoing pressure on consumer spending. Nigerian Breweries plans to focus on cost optimization, market execution, and strengthening brand equity.
Furthermore, the recent full acquisition of Distell Wines and Spirits Nigeria Limited is expected to enhance long-term value creation and expand its portfolio footprint.
Stay tuned to 9am News Nigeria for more Breaking News, Business News, Sports updates And Entertainment Gists.
