Nigeria’s most valuable brewer, Nigerian Breweries Plc, recorded a N85.5 billion profit in the first nine months of 2025, despite posting a N2.9 billion loss in the third quarter, according to the brewer’s filing on the Nigerian Exchange on Wednesday.
The Q3 loss, according to the company, was due to a one-off impairment charge of N6.08 billion occasioned by the post-acquisition fair value adjustments linked to the full integration of Distell Wines and Spirits Nigeria Limited into the group’s operations.
But the nine-month profitability, supported by strong operating profit and a lower net finance cost, comes against the backdrop of N149.5 billion losses incurred by the beer maker in the prior period last year as the Lagos-based brewer navigates sky-high inflation and exchange rate volatility that dealt a blow to earnings.
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The improved earning position for the period under review was partly supported by resilient pricing and gradual volume recovery that saw its turnover surge to a record of N1 trillion. Gross profit rose 97.8 percent to N415.15 billion, up from N209.9 billion in the corresponding period last year.
Despite cooling inflation that slowed for the sixth straight month to 18.02 percent in September 2025, the cost of sales rose 26 percent to N631.23 billion, underscoring the impact of higher input costs and logistic expenses in conveying products.
Operating expenses (OPEX) rose by 56.7 percent to N93.98 billion, primarily driven by a 120.2 percent increase in administrative expenses, primarily linked to one-off restructuring and integration costs from Distell, and a 37.4 percent rise in selling & distribution expenses, reflecting the company’s sustained market support activities.
Despite the sharp rise in OPEX, EBIT and EBITDA margins improved to 3.6 percent and 9.5 percent, respectively, supported by operational efficiency, better cost absorption, and disciplined pricing actions.
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Net finance charges fell by 81.9 percent to N14.00 billion, reflecting a 61.6 percent reduction in debt costs and a net FX gain of N2.94 billion, compared to the FX loss of N48.21 billion in the third quarter of 2024, cushioning the impact of the one-off impairment charge of N6.08 billion in the period.
“The Group delivered a strong top-line growth in the nine months under review despite the high double-digit inflation rate that continues to constrain consumer spend, and the high input costs. The Rights Issue programme of 2024 has contributed in no small measure to the positive turnaround in the profitability of the Group compared to a year ago,” the brewer said in a statement on the NGX.
Despite the quarterly setback, the company’s “Board expects a rebound in the fourth quarter, driven by festive demand, a continued focus on revenue management, and operational excellence. The outlook for the full year 2025 performance remains positive.”