In a striking turnaround from the red, Nigerian Breweries Plc (NB) has kicked off the 2025 financial year with a robust performance, reporting a profit after tax of NGN44.55 billion for Q1-25, a stark contrast to the NGN52.09 billion loss recorded in the corresponding period of 2024. This recovery translates to an earnings per share (EPS) of NGN1.43, up from a loss per share of NGN5.07 in Q1-24.
The company’s positive earnings reflect a remarkable 68.9% year-on-year growth in revenue, supported by strategic price adjustments, continuous product innovation, and a stronger product mix. NB’s premium beer portfolio stood out, with Legend Stout, Desperados, and Heineken leading the charge in performance.
Gross margin rebounded significantly, expanding by 737 basis points to 43.4%, despite a 49.5% rise in the cost of sales. This margin improvement, combined with robust topline growth, propelled EBITDA and EBIT margins to 26.4% and 22.2%, respectively, even as operating expenses increased by 45.8% year-on-year.
On the finance front, the brewer saw a sharp 83.2% drop in net finance costs, down to NGN15.27 billion from NGN90.85 billion in Q1-24. This was largely attributed to a 99.8% reduction in FX losses, thanks in part to the stable exchange rate environment and the FX buffers provided by the 2024 Rights Issue.
Overall, NB recorded a profit before tax of NGN69.99 billion in Q1-25, a dramatic swing from the NGN65.58 billion pre-tax loss of Q1-24. After a tax expense of NGN24.73 billion, the company’s bottom line stood strong.
Commentary: NB’s Q1-25 results affirm the resilience and strategic recalibration that began in 2024. The brewer sustained its Q4-24 momentum, driven by strong revenue streams and ongoing process optimisation. The improved FX position, following the successful 2024 Rights Issue and relative currency stability, also helped to de-risk the balance sheet.
Looking ahead, with the ongoing integration of Distell operations and an unwavering focus on operational efficiency, NB appears well-positioned to sustain this growth trajectory in the rest of 2025. Analysts have noted that revenue and earnings estimates are under review, hinting at further upside potential.
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