Nigerian Breweries Plc kicked off 2025 on a high note, delivering a stellar 186% year-on-year surge in net profit to N44.53 billion in Q1. The company’s strong rebound has reignited investor confidence, sparking a 13.1% rally in its share price to N36.20 and pushing its market capitalization to N1.121 trillion, just shy of its 52-week high.
Key Highlights:
- Revenue Growth Accelerates: Nigerian Breweries recorded 69% year-on-year growth in revenue to N383.64 billion, driven by:
- Deeper market penetration
- Strong commercial execution
- Sustained product innovation and strategic pricing
- Operating Profit Soars: The brewer delivered a 238% year-on-year jump in operating profit to N85.27 billion, a direct reflection of:
- Enhanced cost discipline
- Productivity initiatives
- Volume and value growth across key product categories
- Finance Cost Declines Sharply: Net finance expenses dropped by a significant 83%, following:
- Prudent use of proceeds from the 2024 Rights Issue
- Reduction in FX liabilities
- Capital structure optimization
- Cost of Sales and Profitability: Despite a 49.5% increase in cost of sales to N217.07 billion due to inflationary pressures, the strong topline performance and cost efficiencies drove a solid bottom-line result.
- Turnaround Strategy Gaining Traction: The group’s recovery plan—anchored on portfolio optimisation, operational rightsizing, and disciplined working capital management—continues to deliver measurable outcomes. Notably:
- Net profit reflects the full impact of business recovery and restructuring actions initiated in 2024.
- The brewer has sustained its return to profitability that began in Q4-2024.
- Investor Confidence Strengthened: The recent rally was backed by strong trading activity, with over 15.4 million shares valued at N555.57 million changing hands. Investor sentiment has also been buoyed by the board’s acknowledgment of shareholder support, especially with a 92% subscription rate on the Rights Issue.
With operational resilience, a sharpened commercial strategy, and a healthier balance sheet, Nigerian Breweries appears firmly on track in its turnaround journey. While acknowledging the challenges of Nigeria’s macroeconomic landscape and the upcoming low-demand season, the company is confident in its ability to sustain growth through agility, innovation, financial discipline, and the ongoing integration of Distell.
This Q1 performance reinforces Nigerian Breweries’ potential as a compelling long-term value play in the Nigerian equities market.
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