The management of Nigerian Breweries Plc has turned its recent poor results to a positive outcome with its first quarter ended March 31, 2025 showing a migration from a loss of N65.58billion in Q1 2024 to N69.99 billion profit before tax in Q1 2025.
The Q1 2025 unaudited result and accounts released on the Nigerian Exchange Limited showed that the multinational company declared a profit of N44.55 billion in the period under review as against N52.09billion loss declared in the corresponding period of 2024.
From the profit & loss figures, Nigerian Breweries recorded a significant increase in revenue and reduction in net loss on foreign exchange transactions that played a critical role in profit generation in Q1 2025.
As revenue closed Q1 2025 at N383.64 billion, up by 68.6 per cent from N227.12 billion in Q1 2024, net loss on foreign exchange transactions moved from N72.85 billion in Q1 2024 to N178 million in Q1 2025.
The Company Secretary, Nigerian Breweries, Uaboi Agbebaku in a signed statement stated that the company is building on the strong momentum from the last quarter of 2024, as the Group recorded a 69 per cent year-on-year revenue growth in the Q1 2025.
“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,” the statement explained.
He clarified further 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 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.”
On the transformation strategy driving results, he noted that the strategic initiatives introduced in 2024, including portfolio optimisation, rightsising 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. The Board expresses appreciation to shareholders for their unwavering support, particularly on the Rights Issue, which was 92 per cent subscribed. Their commitment has been instrumental in repositioning the Company for long-term success and growth,” he said.
On outlook, he said, “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.”
