March 16, (THEWILL) — Despite a highlighted profit rebound, Nigerian Breweries Plc’s financial statements for 2025 showed that the foremost brewer experienced a shrink of N72.15 billion in its assets value to N1.06 trillion from N1.13 trillion in the corresponding period, constituting a 6.3 percent decline.
The report also disclosed severe financial strain that choked the major consumer goods firm during the period as it emerged from a preceding huge loss regime. These include persistent negative retained earnings from previous losses in 2023 and 2024; and a huge cost of sales which rose significantly from N764.52 billion in 2024 to N902.23 billion in the review period, representing an increase of 18 percent.
Furthermore, selling and distribution expenses jumped to N278.92 billion in 2025 against N203.23 billion in the year prior, which constitutes a 37.2 percent rise; coupled with substantial increase in administrative expenses from N46.75 billion to N82.85 billion in 2024 and 2025 respectively – representing a significant 77.2 percent rise.
Amid substantial foreign exchange losses and increased operational costs, Nigerian Breweries did not propose a dividend for 2025 making it the third consecutive financial year of dividend drought for the shareholders. The firm now focuses on debt recovery.
The company faces continued challenges from high inflation, reduced consumer purchasing power, and intense competition in the beverage industry. While a rights issue helped mitigate some issues, high finance costs and high interest on borrowings continue to impact net profits.
Nigerian Breweries Plc implemented multiple price increases, described as “sustained price increases” throughout the year to mitigate high inflation and rising input costs. The company’s 35 percent revenue growth in 2025 was largely driven by a strategy of sustained price adjustments across key product segments.
To smoothen the rough edges, a price increase for certain products was initiated in early 2025, with specific mentions of price changes impacting distributors around February and March 2025. These adjustments were part of a recovery plan following significant losses in 2023 and 2024, enabling a return to profitability in 2025.
Additionally, the company signaled further price adjustments in early 2026, indicating a continued trend of price increase to stay afloat. Continued devaluation of the naira and high production costs resulted in the need for consecutive price increases, which may impact consumer demand.
Nigerian Breweries recorded a one-off impairment charge of N6.08 billion in their 2025 financial accounts, specifically reported in the third quarter (Q3-25).
The charge was linked to post-acquisition fair value adjustments and asset rationalisation regarding the full integration of Distell Wines and Spirits Nigeria Limited into the company’s portfolio.
Despite this one-off impairment and a quarterly loss in Q3, Nigerian Breweries reported a strong overall turnaround for the 9-month period (9M-25), with profit after tax settling at N85.5 billion, and a full-year 2025 net profit of N99.1 billion, reversing a heavy loss in 2024.
The impairment was offset by relatively improved foreign exchange conditions, lower net finance costs, and stronger revenue growth during the year.
The dramatic profit rebound was fuelled by a 35 percent increase in revenue, which crossed the N1.47 trillion mark. The company says the positive performance was driven not just by right-pricing, but by a significant boost in productivity and a more efficient supply chain.
“The 35 percent revenue growth recorded for the financial year was supported by sustained innovation, premiumisation, right pricing, and strong commercial execution,” said Uaboi Agbebaku, company secretary/legal director, Nigerian Breweries Plc.
Nigerian Breweries Plc grew its revenue by 35 percent to N1.467 trillion from N1.084 trillion recorded in the corresponding period in 2024. Further breakdown of the audited results showed that the company’s gross profit in the fourth quarter of the financial year also increased from N320 billion in the corresponding period in 2024 to N565 billion, representing a 77 percent increase.
Analysts emphasise that increased output and better production economics allowed the brewer to scale effectively while consumer spending remained pressured in 2025. The brewer’s successful Rights Issue in 2024 allowed the company to slash its net finance costs by about 82.14 percent, drastically reducing its exposure to foreign exchange (FX) losses. Also, the 2025 integration of Distell Wines and Spirits Nigeria has expanded the company’s “beyond beer” portfolio, tapping into more resilient premium segments.
Nigerian Breweries has a rich portfolio of 19 high-quality brands (Heineken, Desperados, Maltina, Life, Amstel Malta, Gulder, Fayrouz, and Legend) produced from nine breweries and distributed nationwide.
“Group operating profit grew by over 190 percent, reflecting the revenue growth, rigorous cost discipline, productivity gains, and supply chain efficiencies on the back of the 2024 business recovery plan.
Group net profit rebounded by 168percent from the net loss position of a year earlier. The rebound was aided by an 83 percent reduction in net finance costs following the successful 2024 Rights Issue which helped to deleverage the balance sheet and eliminate foreign currency exposures,” Agbebaku said.
Despite the operational success, the company is still navigating the aftermath of past losses, with retained earnings remaining in the negative which should be a remarkable concern to the brewing giant.
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.
