NB Posts N69.99bn Pre-tax Profit In Q1

Nigerian Breweries (NB) Plc has declared profit before tax of N69.99 billion, marking a strong recovery back to profitability in the first quarter ended March 31, 2025.

The Company’s unaudited Q1 results on the Nigerian Exchange showed that this is a notable recovery from a pre-tax loss of N65.5 billion in the same quarter of 2024, primarily due strong revenue growth, tamer cost pressures, and a sharp decline in FX losses.

Net revenue rose by 68.91 per cent, increasing from N227.1 billion in Q1 2024 to N383.6 billion in Q1 2025. Cost of sales went up by 49.45 per cent to N217.06 billion from N145.2 billion the previous year, while gross profits rose by 103.4 per cent to N 166.567 billion as against N 81.880 billion in 2023.

Nigerian Breweries in a statement signed by its company secretary, Uaboi Agbebaku said that “this performance was driven by deeper market penetration, sustained innovation, strong commercial execution, and improved customer engagement. Strategic pricing initiatives and enhanced supply chain efficiencies further contributed to the topline expansion.”

It stated that “despite Nigeria’s volatile macroeconomic environment marked by high inflation and constrained disposable income, the Company delivered a strong performance in the quarter, driven by a continued focus on agility, innovation, and disciplined execution.

“Notably, the group operating profit rose by 238 per cent, underscoring the Company’s relentless focus on cost discipline and productivity enhancement. The significant improvement in the operating profit reflects both volume and value growth, as well as the benefits from the business recovery and process optimisation initiatives undertaken in 2024.

“The Group also recorded a 186 per cent increase in net profit, sustaining the return to profitability that started in the last quarter of 2024, and reflecting the full impact of financial restructuring and cost-saving initiatives implemented as part of its business recovery plan.

“Importantly, net finance expenses dropped by 83 per cent, a direct result of the prudent utilisation of proceeds from the 2024 rights issue, which were used to reduce foreign currency liabilities and optimise the Company’s capital structure. This substantial reduction in finance costs has materially strengthened the bottom line and enhanced financial resilience.”

NB added that “the strategic initiatives introduced in 2024, including portfolio optimisation, rightsizing of operations, and disciplined working capital management, continue to yield strong results.

“The Company is firmly on track in the execution of its turnaround plan, including restoring long-term profitability, and building a solid foundation for sustainable growth.”

On outlook, NB stated that “while the operating environment remains uncertain and the low season approaches, the Company is confident of its ability to navigate ongoing macroeconomic pressures. With a clear focus on agility, innovation, the integration of Distell, and financial discipline, the Company remains well-positioned to drive continued growth and deliver value to all stakeholders.”