International Breweries Plc Posts Strong Growth, Eyes Future Expansion
In the last financial year, International Breweries Plc navigated a challenging brewing industry landscape, marked by infrastructural obstacles. Despite these headwinds, the company maintained a steady growth profile, leveraging opportunities to drive success.
The company’s revenue grew significantly, reaching N619.04 billion in 2025, up from N488.96 billion in 2024, representing a 26.6% increase. This growth was driven by increased consumption of its brands, showcasing the company’s ability to connect with Nigerian consumers.
Key marketing initiatives, such as brand promotions and sponsorships, contributed to the company’s success, although they also increased costs. The cost of sales rose to N409.40 billion in 2025, from N357.61 billion in 2024, a 14.5% increase. However, the company managed to maintain a healthy gross profit margin, with gross profit increasing to N209.64 billion in 2025, from N131.35 billion in 2024, a 59.6% increase.
Operating expenses increased to N124.78 billion in 2025, from N108.47 billion in 2024, a 15% rise, reflecting the challenging business environment. Despite this, the company reported a significant profit before tax of N88.96 billion in 2025, compared to a loss of N111.82 billion in 2024.
Net profit for the year was N50.91 billion in 2025, compared to a net loss of N113.61 billion in 2024. The company’s profitability metrics improved, with pre-tax margin increasing to 14.4% in 2025, from -22.9% in 2024.
Analysts note that while the company’s margins are improving, the operating environment remains challenging, with inflationary pressures and infrastructure constraints affecting the industry. However, International Breweries’ strong brand portfolio and marketing capabilities position it well for future growth.
Key financial highlights:
Revenue: N619.04 billion (2025) vs N488.96 billion (2024)
Gross profit: N209.64 billion (2025) vs N131.35 billion (2024)
Profit before tax: N88.96 billion (2025) vs loss of N111.82 billion (2024)
Net profit: N50.91 billion (2025) vs net loss of N113.61 billion (2024)
Pre-tax margin: 14.4% (2025) vs -22.9% (2024)
The company continued to enhance its cash management capabilities, improving liquidity and rebalancing its debt profile. The company’s days receivable increased to 26 days in 2025 from 22 days in 2024, indicating that it took four days longer to collect payments from debtors. This could be a sign of relaxed credit terms or slower payment from customers, which might impact the company’s cash flow.
The days payable increased to 55 days in 2025 from 36 days in 2024, showing that the company is taking longer to settle its debts with suppliers. This could be a sign of effective cash management, as the company is using the suppliers’ funds to finance its operations.
The inventory days decreased to 131 days in 2025 from 135 days in 2024, indicating that the company is managing its inventory more efficiently. The reduction in inventory days suggests that the company is selling its products faster, which could lead to improved cash flow and reduced storage costs.
The cash cycle decreased to 102 days in 2025 from 121 days in 2024, indicating an improvement in the company’s cash management. The shorter cash cycle means that the company is converting its inventory into cash faster, which could lead to improved liquidity and reduced financing costs.
The company’s capital expenditures increased significantly to N9.62 billion in 2025 from N1.2 billion in 2024, indicating a major investment in infrastructure and equipment. This investment is likely aimed at upgrading the company’s breweries and improving its production capacity, which could drive future growth and profitability.
Despite these improvements, the company’s current ratio declined, largely due to increased reliance on bank overdrafts, which totaled N3.7 billion in 2025. However, overall financial leverage decreased as the company repaid term loans, making it more attractive to investors.
International Breweries is investing N9.62 billion in capital expenditures, up from N1.2 billion in 2024, focusing on upgrading its Ogba and Benin breweries. This investment signals management’s commitment to continuous improvement and growth, likely to drive better results and attract investor interest.
