The Nigerian brewing industry has staged an impressive recovery in 2025. Nigerian Breweries, Guinness Nigeria, International Breweries, and Champion Breweries have collectively seen their market capitalization surge to N4.63 trillion, more than double the N2.1 trillion recorded in 2024.
Despite Champion Breweries leading in share price performance with a 246.46% YtD gain, Nigerian Breweries still holds the crown in market capitalization at N2.12 trillion.
The rally is clear, but questions remain: Which brewery is executing the best?
Revenue and drivers: Who’s leading?
In the first nine months of 2025, Nigerian Breweries led, with N1,046.38 billion in revenue. That’s more than half (about 54%) of the total revenue generated by all four companies combined.
- While it only grew by 47.20% compared to last year, its massive size keeps it firmly in control of the market.
International Breweries posted N472.57 billion in revenue and 37.60% growth.
- Although it didn’t grow as fast as Nigerian Breweries and Guinness, its solid growth still shows strength in the market.
Guinness, with a 71.56% growth in revenue, reaching N377.94 billion, recorded the highest growth.
It is important to note that we used Guinness’ nine-month period ending March 2025. If we were to consider the 2025 nine-month calendar year, from January to September, the revenue would amount to N353.071 billion, with a gross profit margin of 38%.
- While it’s still much smaller than Nigerian Breweries and international breweries, this growth suggests that Guinness is not only recovering but expanding rapidly, with potential to challenge the market leader in the future.
Finally, we have Champion Breweries, with the smallest revenue at N21.44 billion, but it is growing at 52.92% year-on-year.
- This kind of growth is impressive, especially for a smaller player.
Verdict
Nigerian Breweries leads in absolute revenue, but Guinness wins in revenue growth.
On a long-term basis, Nigerian Breweries has a 5-year total revenue of N3 trillion, while International Breweries leads in growth with a CAGR of 37%.
The combined revenue of N1.9 trillion in the first nine months of 2025, higher than the 5-year average N1.1 trillion, signals a significant industry rebound.
Cost management and margins: Who is doing the best job?
In 2025, the Nigerian brewing sector showed a big shift in how well the companies are managing their costs and margins, and some are performing better than others.
- Champion Breweries stands out with the highest gross profit margin of 48.04% and operating margin of 20.01%. Despite having the smallest revenue, it leads in cost efficiency. Its finance costs are the lowest, and it has the second-highest interest coverage ratio (5.17x), indicating it can easily meet debt obligations.
- International Breweries performed well with a strong post-tax profit margin of 12.24%, the highest among the four. The company also has the best interest coverage ratio (10.93x), putting it in a strong position to handle its debt. However, its gross profit margin and operating margin are lower than Champion Breweries.
- Nigerian Breweries has the largest revenue but faces higher finance costs and interest expenses compared to the others, which affected its overall profitability. It has an operating margin of 15.59%, but its net profit margin is 8.17%, indicating significant cost pressure.
- Guinness showed a strong recovery in 2025, but its margins are still smaller compared to others. Its gross profit margin is 27.39%, and its operating margin is 7.74%, which is solid but not as high as Champion’s. Its post-tax margin is 1.78%, which is the lowest, reflecting cost pressure, especially overheads and finance costs.
Verdict: Champion Breweries leads in cost efficiency and top-margin margins, while International Breweries leads in post-tax margin.
Nigerian Breweries faces cost pressures, and Guinness still has room to improve its cost management.
Who has been more profitable and what is driving it?
The Nigerian brewers turned around their performance in 2025, moving from losses to profitability:
- Nigerian Breweries posted a post-tax profit of N85.51 billion (up from a loss of N149.53 billion in 2024). The turnaround was driven by strong revenue growth, the reversal of foreign exchange losses (from N47 billion in 2024), and reduced finance costs (from N72 billion in 2024).
- International Breweries posted a post-tax profit of N57.83 billion (up from a loss of N113 billion in 2024). The recovery was driven by a reduction in foreign exchange losses (from N159 billion in 2024 to N13.5 billion) and a decline in finance costs (from N37 billion in 2024 to N6 billion).
- Guinness posted a post-tax profit of N6.72 billion with a profit margin of 1.78%. While revenue grew, high overhead costs and finance expenses limited profitability.
- Champion Breweries posted a post-tax profit of N2.05 billion with a profit margin of 9.54%. Strong cost control and operational efficiency drove its profitability, despite being the smallest player.
Verdict: Nigerian Breweries leads in absolute profit, Champion Breweries has the best profit margin, and International Breweries shows the strongest recovery.
How strong are their balance sheets, and who is carrying more debt?
- Nigerian Breweries reported total assets of N1.11 trillion and equity of N463.94 billion, with borrowings of N206.33 billion. This gives a debt-to-equity ratio of 0.44x, showing manageable debt.
- International Breweries reported total assets of N713.19 billion, with no debt, putting it in a strong position with zero debt.
- Guinness reported total assets of N285.63 billion and equity of N8.88 billion, with borrowings of N58.5 billion. The debt-to-equity ratio is 6.59x, indicating heavy reliance on debt.
- Champion Breweries reported total assets of N36.83 billion and equity of N13.56 billion, with borrowings of N15.8 billion. The debt-to-equity ratio of 1.17x suggests moderate debt levels.
Verdict: Nigerian Breweries has the largest balance sheet size. But International Breweries has the strongest balance sheet due to zero debt, while Nigerian Breweries and Champion Breweries have manageable debt levels. Guinness has the highest debt, showing it’s more reliant on borrowing.
Dividend history: Who rewards better?
- Nigerian Breweries has not paid a dividend since 2022, but with a post-tax profit of N85.51 billion in 2025, investors expect the company to resume dividend payments.
- Champion Breweries paid a 6 kobo dividend in 2024, based on N816.995 million in profit after tax. With 9M 2025 profit rising to N2 billion, investors expect Champion Breweries to increase its dividend payout for 2025.
- International Breweries has not paid a dividend in the past five years and reported accumulated losses of N235 billion. Despite returning to profitability in 2025, it’s unlikely to pay a dividend this year.
- Guinness paid dividends in 2021 and 2022, but it still has retained losses. It is unlikely to pay a dividend in 2025.
Verdict Summary:
- Nigerian Breweries is expected to resume dividend payments in 2025.
- Champion Breweries may increase its dividend payout due to its strong growth in 9M 2025.
- International Breweries and Guinness are unlikely to pay dividends in 2025 due to accumulated losses.
What are they worth, and what is the market really saying?
The brewers have generally enjoyed premium valuations, with an average P/E ratio of 28x, indicating that the market expects strong growth across the sector.
Given Nigerian Breweries’ market leadership, its lower P/E ratio of 22.17x compared to the sector’s average of 28x may indicate undervaluation.
Overall, Nigerian Breweries and Champion Breweries offer the most appealing investment perspectives, with Nigerian Breweries being the most balanced choice and Champion Breweries offering great growth potential.
