September 21, (THEWILL) — International Breweries Plc recorded a strong financial performance in the first-half of 2025, compared to the same period in 2024, signaling improved efficiency and stability that could create a rebound for the dividend-drought firm.
The company’s revenue climbed by 53 percent to ₦340.99 billion in HY 2025, up from ₦223.20 billion in the same period last year. This growth was driven by stronger market demand and more stable pricing strategies.
This top-line expansion translated into a sharp profit recovery: profit before tax swung from a hefty loss of ₦150.23 billion in HY 2024 to a healthy profit of ₦61.53 billion in HY 2025. Profit after tax similarly improved, moving from a loss of ₦106.78 billion to a net profit of ₦41.29 billion.
Profitability ratios reveal the depth of this turnaround. The gross profit margin improved from 28.05 percent in HY 2024 to 35.65 percent in HY 2025, reflecting better cost management and increased production efficiency.
Meanwhile, the net profit margin moved from a negative 47.85 percent to a positive 12.11 percent, signaling a strong bottom-line recovery. Operating profit margin, considering cost of sales and operating expenses, rebounded from a loss position of about 32 percent to a solid gain of nearly 34 percent.
Expense caution control was a major factor in this turnaround. Finance costs, primarily interest expenses, dropped dramatically from 14.94 percent of revenue (₦33.34 billion) in HY 2024 to just 1.14 percent of revenue (₦3.90 billion) in HY 2025. Other operating expenses also fell sharply, decreasing from 60.05 percen of revenue (₦134.01 billion) to a mere 1.82 percent the (₦6.21 billion).
One of the greatest burdens in 2024 was foreign exchange losses, which heavily affected profitability. Realized forex losses consumed 47.7 percent of revenue, and unrealized losses accounted for another 15.9 percent, together exceeding 63 ugly of total revenue. In HY 2025, however, these losses were slashed to almost negligible levels: realized forex losses fell to just 0.0012 percent of revenue (around ₦4 million), and unrealized losses dropped to 0.0009 percent (approximately ₦3 million). This dramatic reduction demonstrates much improved forex risk management and reflects a more stable naira environment.
Pricing in the company’s products (Trophy Lager, Betamalt, Hero Lager, Budweiser, Grand Malt, Castle Lite, and Flying Fish) also played a role in the company’s recovery. After a sharp 15–20 percent increase in product prices in 2024 due to inflation and currency volatility, price adjustments in 2025 were more moderate, around 5–7%, supporting volume growth and customer retention. In the Nigerian beverage market, consumer demand stabilized after a volatile 2024 marked by inflation and currency fluctuations. The company’s revenue jumped by 53 percent, from ₦223.20 billion in HY 2024 to ₦340.99 billion in HY 2025. This growth reflects stronger market appetite supported by moderated price increases — around 5–7 percent in 2025, compared to steeper hikes of 15–20 percent in 2024.
Improved gross profit margin from 28.05 percent in 2024 to 35.65 percent in 2025 demonstrates better cost absorption amid growing volumes. Consumers responded positively to more stable pricing, enabling International Breweries to expand its market share despite fierce competition.
The brewing industry in Nigeria faced supply chain disruptions and raw material cost pressures in 2024, which significantly squeezed margins. However, the sector began stabilising in 2025 as suppliers normalised operations and logistical constraints eased.
Other industry players also grappled with forex losses and high inflation, but International Breweries’ sharp reduction in operating expenses—from 60.05 percent of revenue in 2024 to just 1.82 percent in 2025—underscores its operational efficiency edge.
Government fiscal policies and regulatory frameworks heavily influenced the company’s performance. In 2024, heightened excise duties, increased import tariffs, and stringent forex controls contributed to elevated costs and forex losses.
The government’s gradual easing of foreign exchange restrictions and efforts to stabilize the naira in 2025 played a pivotal role in reducing International Breweries’ realized forex losses from a staggering 47.7 percent of revenue in 2024 to a negligible 0.0012 percent in 2025. Unrealized forex losses similarly fell from 15.9 percent to 0.0009 percent.
Nigeria’s macroeconomic environment was characterized by high inflation and currency volatility in 2024, which heavily impacted consumer spending power and business costs.
The company’s finance cost ratio — interest expenses as a percentage of revenue — dramatically improved from 14.94 percent in 2024 to 1.14 percent in 2025, reflecting lower borrowing costs and better capital structure management amid a recovering economy.
Currency stabilisation efforts and easing inflation helped International Breweries regain footing reflected in the net profit margin swing from negative 47.85 percent in 2024 to a positive 12.11 percent in 2025.
International Breweries’ internal turnaround is marked by rigorous cost control and forex risk management. Profit before tax rebounded from a loss of ₦150.23 billion in HY 2024 to a profit of ₦61.53 billion in HY 2025. Profit after tax moved from a significant loss of ₦106.78 billion to a net profit of ₦41.29 billion.
The company’s operating profit margin surged from a loss position of 32 percent to nearly 34 percent, signaling a return to operational excellence. Finance costs shrank both in absolute terms and as a ratio of revenue, while other expenses plummeted from 60.05 percent to just 1.82 percent.
Management credits these gains to improved production efficiencies, tighter expense management, and proactive forex risk mitigation strategies that slashed total forex losses from over 63 percent of revenue in 2024 to virtually zero in 2025.
The company’s ownership remains highly concentrated, with AB InBev holding 161,580,471,272 shares out of a total of 168,291,591,406. Expressed as a ratio, this is 24:25, meaning AB InBev controls nearly all of the company. Brauhaase holds 2,377,579,013 shares, roughly 1:71, while other minority shareholders share the remaining 1:39. This concentration suggests that major decisions are guided by the parent company, providing stability, while dividends are distributed based on the proportion of shares held.
Operational efficiency has improved significantly. The company’s cost-to-income ratio fell from 25:100 in the first half of 2024 to 17:100 in 2025. In simple terms, the company now spends 17 naira to earn 100 naira in revenue, compared to 25 naira last year. This drop reflects better management of operating expenses and stronger profitability, which could enhance the company’s ability to pay dividends to shareholders.
Liquidity has also strengthened. The ratio of current assets to current liabilities improved from 119:100 in 2024 to 31:20 in 2025. Current liabilities, also called short-term obligations, are debts and commitments the company must pay within one year. For International Breweries, these include money owed to suppliers, short-term loans, salaries and taxes owed, the portion of long-term debt due within the year, and other similar obligations. The improvement shows that the company now has 31 naira in short-term assets for every 20 naira of obligations, up from 119 naira for every 100 naira last year. This indicates the company is better positioned to meet its short-term obligations, reducing financial risk and supporting consistent dividend payments.
Overall, International Breweries appears more efficient, financially stable, and well-positioned to sustain dividends. Investors can take confidence from the company’s improved performance and stronger financial ratios, even as ownership remains largely concentrated.
***Written by Ogochukwu Onwaeze.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
