Nigerian Breweries Plc announced a robust pre-tax profit of N43.87 billion for the second quarter of 2025, a stark contrast to the N33 billion loss reported in Q2 2024, according to its unaudited financial results. The company’s first-half pre-tax profit reached N88.42 billion, reversing a N85.20 billion loss from H1 2024, driven by strong revenue growth and improved cost management.
The company recorded a 40.8% year-on-year revenue increase to N354.51 billion in Q2 2025, up from N251.76 billion, with H1 revenue soaring 54% to N738.14 billion. Gross profit surged 86% to N144.43 billion, achieving a 41% gross margin, as the cost of sales grew more slowly at 21% to N210.08 billion. Operating profit skyrocketed 418% to N66.63 billion, pushing H1 operating profit to N151.90 billion, more than doubling the full-year 2024 figure.
Key to this performance was a significant reduction in finance costs, which dropped to N12.46 billion from N24.40 billion in Q2 2024, alongside foreign exchange gains. Selling expenses rose by 23% to N64.41 billion, a slower pace than Q1’s 47%, while administrative expenses grew modestly by 5.3%. The company also reduced credit impairment charges, enhancing profitability.
Nigerian Breweries’ total assets stood at N1.112 trillion, down 2.35% year-on-year, but retained losses halved to N82.47 billion from N169.80 billion, boosting shareholders’ funds to N549.48 billion. The company attributed its success to innovative product offerings, optimized pricing, and efficient operations amid rising input costs. Proceeds from a recent Rights Issue were used to cut debt and clear foreign currency obligations, slashing net financing costs by 87%.
Looking ahead, Nigerian Breweries anticipates moderate sales volumes in Q3 due to seasonal factors and pressure on consumer spending. The company plans to focus on cost optimization, strong market execution, and enhancing brand equity. The acquisition of an 80% stake in Distell Wines and Spirits Nigeria Limited is expected to bolster long-term value creation. As of July 29, 2025, the company’s share price stood at N74, reflecting a 131% year-to-date gain, signaling strong investor confidence in its growth trajectory.
