Nigerian Breweries Plc has released its unaudited financial results for the second quarter ended June 30, 2025, reporting a pre-tax profit of N43.87 billion, a significant turnaround from the pre-tax loss of N33 billion recorded in the same period last year.
This strong performance pushed the company’s H1 2025 pre-tax profit to N88.42 billion, compared to a pre-tax loss of N85.20 billion in the first half of 2024.
Revenue for Q2 2025 rose by 40.8% year-on-year to N354.51 billion, up from N251.76 billion in Q2 2024. This brought total H1 2025 revenue to N738.14 billion, representing a 54% year-on-year growth.
Gross profit in Q2 surged by 86% to N144.43 billion, lifting the gross margin to 41%. This improvement was driven by a slower growth in the cost of sales relative to revenue. The cost of sales rose by 21% to N210.08 billion.
Improved profitability was also supported by moderated growth in administrative, selling, and distribution expenses, as well as a decline in credit impairment charges.
- Selling expenses rose by 23% to N64.41 billion, compared to a 47% increase in Q1.
- Administrative expenses increased by just 5.3%, down from the 39.7% recorded in Q1 2025.
As a result, operating profit jumped to N66.63 billion, representing 418% year-on-year growth, pushing H1 2025 operating profit to N151.90 billion, more than double the company’s full-year 2024 figure.
Another key highlight was the significant reduction in finance costs and a foreign exchange gain:
- Finance costs fell to N12.46 billion, compared to N15.27 billion in Q1 2025 and N24.40 billion in Q2 2024.
On the balance sheet, the company reported total assets of N1.112 trillion, representing a 2.35% year-on-year decline.
Meanwhile, retained losses dropped by over 50% to N82.47 billion from N169.80 billion as of December 2024. This improvement helped lift total shareholders’ funds to N549.48 billion.
Key Highlights: (Q2 2025 vs. Q2 2024)
- Revenue: N354.509 billion +40.81% YoY
- Cost of Sales: N210.076 billion, +20.76% YoY
- Gross Profit: N144.433 billion +85.64% YoY
- Operating Profit: N66.632 billion +417.55% YoY)
- Total Assets: N1.114 trillion, -2.35% YoY
According to the earnings release, “building on the strong momentum of Q1 2025, the Group recorded a 54% increase in revenue, 298% growth in operating profit, and 204% growth in net profit in H1 2025.”
The performance was driven by sustained innovation, strong commercial execution, optimized pricing strategies amidst rising input costs, better cost management, and enhanced operational efficiencies. These highlight the company’s strong fundamentals and agility in navigating a challenging business environment.
The company also benefited from the prudent utilization of proceeds from its Rights Issue, which were used to reduce debt and eliminate foreign currency-denominated obligations resulting in an 87% reduction in net financing costs.
Outlook
Looking ahead, the company expects moderate sales volumes in the coming months due to ongoing pressure on disposable incomes and seasonality associated with the third quarter. The company’s focus will remain on cost optimization, market execution, and strengthening brand equity across its portfolio.
Additionally, the full ownership and integration of Distell Wines and Spirits Nigeria Limited is expected to strengthen its platform for long-term value creation for shareholders.
As of the close of trading on July 29, 2025, Nigerian Breweries’ share price stood at N74 per share, reflecting a 131% year-to-date gain.
