…A one-off impairment charge of N6.08 billion
…Revenue grew by 33.4% y/y in Q3-25 (9M-25: +47.2% y/y)
…On a q/q basis, revenue declined by 13.1%, consistent with seasonal volume slowdown typically observed in the third quarter.
THUR OCT 23 2025-theGBJournal| Nigerian Breweries Plc (NB) reported a loss per share of N0.13 (Q3-24: loss per share of N6.35) on Wednesday, primarily due to a one-off impairment charge of N6.08 billion.
The impairment arises from post-acquisition fair value adjustments linked to the full integration of Distell Wines and Spirits Nigeria Limited into the group’s operations.
9M-25 EPS consequently settled at N2.75, compared to a loss per share of N14.55 in 9M-24, reflecting a marked turnaround in operational performance.
Nigerian Breweries Plc revenue grew by 33.4% y/y in Q3-25 (9M-25: +47.2% y/y), reflecting resilient pricing, gradual volume recovery compared to 2024, and sustained growth in the premium portfolio.
On a q/q basis, revenue declined by 13.1%, consistent with seasonal volume slowdown typically observed in the third quarter.
Gross margin expanded by 121bps y/y to 33.8% (Q3-24: 21.7% | 9M-25: + 101bps y/y to 39.7%), supported by the robust revenue growth and easing cost pressures, as cost of sales grew slower (+12.8% y/y) supported by improved input cost management and pricing discipline, as volume recovery remained gradual relative to the depressed 2024 base.
Operating expenses (OPEX) rose by 56.7% y/y to N93.98 billion, primarily driven by a 120.2% y/y increase in administrative expenses (linked to one-off restructuring and integration costs from Distell) and a 37.4% y/y 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% and 9.5% (Q3-24: -3.9% and 2.1%) respectively, supported by operational efficiency, better cost absorption, and disciplined pricing actions.
Net finance charges fell by 81.9% y/y to N14.00 billion, reflecting reduced debt costs (-61.6% y/y) and net FX gain of N2.94 billion (compared to the FX loss of N48.21 billion in Q3-24), cushioning the impact of the one-off impairment charge of N6.08 billion in the period (Q3-24: nil).
”We believe the charge reflects post-acquisition fair value adjustments and asset rationalisation as the group aligns Distell’s operations with their broader portfolio strategy,” says Cordros Research in a note the G&BJournal.
Overall, NB recorded a pre-tax loss of N2.77 billion in Q3-25 (Q3-24: loss of N86.66 billion), with tax expense of N138.73 million (vs tax credit of N22.36 billion in Q3-24). Consequently, loss after tax settled at N2.91 billion (vs loss of N64.30 billion recorded in Q3-24).
Despite the quarterly setback, the 9M-25 performance underscores a strong operational turnaround — supported by robust revenue growth, improved gross margins, and stabilized FX conditions.
These improvements suggest that underlying fundamentals are strengthening, even as quarterly results remain affected by timing and one-off factors.
Looking ahead, analysts at Cordros expect Q4 performance to benefit from festive-driven consumption, easing input costs, continued execution on cost optimisation and pricing discipline. Overall, NB remains on track to close the year stronger.
X-@theGBJournal|Facebook-the Government and Business Journal|email:gbj@govbusinessjournal.com|govandbusinessj@gmail.com
