Shares of Nigerian Breweries Plc have increased by over 16% month-to-date in April, surpassing N39 and bringing its year-to-date performance to 24% so far in 2025.
The group recently reported a pre-tax profit of N69.9 billion for the first quarter ended March 31, 2025, a recovery from a N65.5 billion loss in the same quarter of 2024, attributed to increased revenue and reduced foreign exchange losses.
This follows the announcement in March that Nigerian Breweries Plc acquired the remaining 20% shareholding in Distell Wines and Spirits Nigeria Limited (DWSN), intended to support the group’s goal of diversifying its portfolio beyond beer.
So far in April, the company’s shares have risen by over 16% in the Nigerian stock market, with trading volumes exceeding 79 million shares, significantly contributing to its year-to-date performance.
Market trend
Nigerian Breweries has recorded a year-to-date performance of 24% in 2025, an improvement over the same period last year when it declined by more than 18%.
- The company’s shares began trading in 2025 at N32.00, with a market volume of 205.7 million shares, and closed January in the green at N35.80.
- However, the stock faced challenges in February and March, with declines of 2.79% and 2.01%, respectively.
So far in April, a bullish surge has pushed the share price above N39 in the Nigerian stock market, contributing to overall performance.
Possible drivers of bullish action
While the exact factors driving the recent surge in Nigerian Breweries’ share price might not be completely known, some favourable fundamental events may have contributed to the positive sentiment.
- The company recently released its financial results for the first quarter ended March 31, 2025, reporting a pre-tax profit of N69.9 billion—a significant recovery from a pre-tax loss of N65.5 billion during the same quarter in 2024, as revenue increased.
- Despite a 49.45% rise in costs, which reached N217.06 billion, gross profits grew by 103.43%, totalling N166.5 billion compared to N81.8 billion in Q1 2024.
- The group also reported N85.2 billion in profits from core operations, marking a substantial increase of 237.48% from N25.2 billion.
- Additionally, net foreign exchange losses were reduced significantly, dropping from N72.8 billion in Q1 2024 to just N178.01 million in Q1 2025.
Earlier in the year, Nigerian Breweries announced the acquisition of the remaining 20% stake in Distell Wines and Spirits Nigeria Limited (DWSN), a strategic move aimed at supporting the company’s ambition to diversify beyond beer.
Highlighting the advantages of the acquisition, Nigerian Breweries stated: “The full acquisition will help to reduce complexities and make decision-making faster in NB’s ambition to expand beyond beer.”
