Nigerian Breweries reports ₦85.5bn profit for the first nine months of 2025, overcoming a Q3 loss linked to a one-off impairment charge.
Nigeria’s largest beer producer, Nigerian Breweries Plc, has reported a profit of ₦85.5 billion for the first nine months of 2025, despite a third-quarter setback that saw the company post a ₦2.9 billion loss.
The brewer disclosed the figures in its latest financial statement filed with the Nigerian Exchange (NGX) on Monday October 27, 2025. It attributed the quarterly loss to a one-off impairment charge of ₦6.08 billion arising from post-acquisition adjustments following the full integration of Distell Wines and Spirits Nigeria Limited into its operations.
Despite the Q3 dip, the company’s year-to-date results mark a sharp turnaround from the ₦149.5 billion loss recorded during the same period last year. Nigerian Breweries credited the recovery to strong operating profit, improved pricing, and reduced finance costs amid challenging economic conditions marked by inflation and currency volatility.
Turnover for the period climbed to an unprecedented ₦1 trillion, reflecting resilient pricing strategies and a gradual recovery in sales volume. Gross profit nearly doubled — up 97.8 percent to ₦415.15 billion, compared with ₦209.9 billion a year earlier.
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Although inflation eased for the sixth consecutive month to 18.02 percent in September 2025, the brewer’s cost of sales rose by 26 percent to ₦631.23 billion, highlighting persistent pressure from input costs and logistics expenses.
Operating expenses (OPEX) surged by 56.7 percent to ₦93.98 billion, driven largely by a 120.2 percent increase in administrative costs tied to the Distell integration and a 37.4 percent rise in selling and distribution expenses. Even so, EBIT and EBITDA margins improved to 3.6 percent and 9.5 percent, respectively — a sign of better operational efficiency and disciplined pricing.
The company’s net finance charges dropped sharply by 81.9 percent to ₦14 billion, supported by a 61.6 percent reduction in debt costs and a ₦2.94 billion foreign exchange gain, compared with a ₦48.21 billion FX loss in 2024.
“The Rights Issue program of 2024 has contributed in no small measure to the positive turnaround in profitability,” Nigerian Breweries said in a statement.
Despite the third-quarter loss, the company’s Board expressed optimism about a fourth-quarter rebound, citing festive season demand and a continued focus on operational excellence.