Nigerian Breweries posts 186% surge in profit

Nigerian Breweries Plc has announced a return to profitability in the first quarter of 2025, reporting a 186 per cent increase in net profit compared to the same period in 2024.

The unaudited financial results, which were released on the Nigerian Exchange Limited on Thursday, showed that the company’s revenue for the period ended March 31, 2025, stood at N383.6bn, marking a significant 68.9 per cent increase from N227.1bn recorded in the first quarter of 2024.

Nigerian Breweries also reported a remarkable 238 per cent rise in operating profit, which soared to N85.3bn, up from N25.3bn in the same period of 2024

A key factor in the company’s return to profitability was the significant reduction in net finance expenses, which fell by 83 per cent to N15.3bn, compared to N90.8bn in the first quarter of 2024. This reduction in finance costs helped boost the company’s net profit, which stood at N44.6bn, reversing the loss of N52.1bn recorded in the first quarter of 2024.

The company’s basic earnings per share for the first quarter of 2025 stood at 143 kobo, a sharp recovery from the negative EPS of 627 kobo reported in the same period of 2024.

In terms of assets, Nigerian Breweries reported total assets of N1.14tn, reflecting a slight increase from N1.13tn as of December 31, 2024. The company’s continued investment in property, plant, and equipment, which rose to N540.44bn from N535.27bn in the previous quarter, underscores its commitment to enhancing production capabilities and maintaining a robust operational foundation.

Additionally, Nigerian Breweries’ intangible assets and goodwill were valued at N99.35bn, slightly down from N99.84bn in the last quarter, while the company’s investments surged to N150m, signalling a strategic approach to bolstering its financial portfolio.

The company also saw an improvement in its liquidity position, with cash and cash equivalents standing at N93.08bn, down from N150.59bn previously. Inventory levels increased slightly to N184.27bn from N181.26bn, reflecting efficient management of raw materials and finished goods.

Equity attributable to the owners of the company grew to N506.70bn, up from N463.03bn in December 2024, driven by an improvement in retained earnings. Retained earnings increased to N126.33bn from N169.80bn, further strengthening the company’s financial position.

On the liabilities front, the company’s total liabilities decreased to N637.65bn from N674.33bn in the previous quarter. This reduction was mainly due to a decrease in loans and borrowings, which fell by N5bn to N235.25bn from N240.17bn as of December 2024.

The Board of Directors of Nigerian Breweries expressed gratitude to shareholders for their continued support, particularly regarding the 2024 Rights Issue, which was 92 per cent subscribed. The board emphasised that the shareholders’ backing has been crucial in repositioning the company for long-term success and sustainable growth.

The PUNCH reported that Nigerian Breweries Plc has released its audited Group Financial Statements for the 2024 financial year, reporting an unprecedented revenue of N1.1 trillion.