Nigerian Breweries has delivered a robust financial performance in 2025, their revenue growth and strategic investments underscore their commitment to excellence and position the company for sustained growth in the competitive brewing landscape.
In the last financial year, Nigerian Breweries navigated a brewing industry landscape fraught with infrastructural challenges, yet managed to chart a course of growth amidst adversity. The company helped more Nigerians savor its iconic brands, driving a revenue surge of 37% to N1.467 trillion from N1.084 trillion. This impressive performance can be attributed to strategic initiatives, including effective promotions and brand revitalization.
Financially, Nigerian Breweries demonstrated resilience, with cost of sales rising modestly by 18% to N902.24 billion from N764.52 billion, showcasing prudent cost management. This careful balancing act bolstered gross profit, which leapt 77% to N565.18 billion from N319.92 billion.
However, operating in Nigeria’s challenging environment exacted a toll, with selling and distribution expenses climbing 37% to N278.93 billion from N203.24 billion, and administrative expenses soaring 77% to N82.85 billion from N46.76 billion. Despite these pressures, the company posted a robust operating profit of N205.20 billion, a remarkable turnaround from N69.90 billion in the previous year.
Nigerian Breweries’ prudent financial management shone through, with net finance costs declining to N44.14 billion from N252.81 billion, aided by strategic investments. This, coupled with a 14% rise in profit before tax to N161.06 billion from a loss of N182.92 billion, underscores the company’s resilience.
After tax, Nigerian Breweries recorded a profit of N99.10 billion, a significant recovery from a loss of N144.88 billion, with earnings per share rebounding to 319 kobo from a loss of 1,207 kobo. While pre-tax margin edged up to 11% from a negative 17%, and net profit margin improved to 7% from a negative 13%, the company acknowledges the need for sustained cost optimization and revenue growth.
As Nigerian Breweries navigates the complexities of Nigeria’s business environment, its focus on innovation, brand building, and operational efficiency will be pivotal in driving future growth and delivering value to stakeholders. The company’s commitment to investing in its facilities, as evidenced by its capital expenditure plans, signals a promising outlook for the future.Nigerian Breweries demonstrated enhanced cash management prowess in the period under review, optimizing its liquidity position and reconfiguring its debt profile. The company’s days receivable edged up to 26 days from 22, implying a slightly longer wait for payments from debtors. However, this was offset by a deliberate strategy to stretch payment terms to 55 days from 36, providing a welcome cash cushion.
Inventory management also showed improvement, with stockholding periods decreasing to 131 days from 135, indicating efficient supply chain operations. These moves contributed to a shorter cash cycle of 102 days, down from 121, showcasing the company’s ability to manage working capital effectively.
Despite these gains, Nigerian Breweries’ current ratio dipped, largely due to increased reliance on bank overdrafts, which totaled N3.7 billion compared to none in the previous year. Encouragingly, overall financial leverage has decreased, driven by the elimination of term loans, making the company more attractive to investors.
The company is poised for growth, with a significant investment commitment of N9.62 billion, a substantial increase from N1.2 billion in the prior year, earmarked for upgrading its Ogba and Benin breweries. This strategic move signals management’s commitment to continuous improvement and bodes well for future performance.
This investment is particularly noteworthy given the company’s recent international recognition for quality, with its breweries bagging awards on the global stage. This achievement underscores Nigerian Breweries’ dedication to excellence and positions the company favorably in the competitive brewing landscape.
As investors scrutinize the company’s financials, Nigerian Breweries’ proactive approach to cash management, debt reduction, and strategic investment should instill confidence in its prospects. With a renewed focus on operational efficiency and quality, the company is well-positioned to drive growth and deliver value to stakeholders.
