TUE OCT 28 2025-theGBJournal| International Breweries Plc (INTBREW), a key player in the Nigerian beverage industry on Monday posted better-than-expected third-quarter revenue amid softer-than-expected volume traction, as consumers remained highly price-sensitive in the period.
INTBREW’s revenue surged 9.4% y/y (9M-25: +37.6% y/y) in Q3-25 driven by price-mix gains, and despite drop in by 21.4% on a quarter-on-quarter basis.
The quarter-on-quarter slide reflects seasonal volume moderation and price sensitivity among low-income consumers, which remains a challenge in value-centric segments.
INTBREW equally delivered a strong margin recovery, with gross margin expanding by 308bps y/y to 29.9% (9M-25: +643bps to 34.0%) following a slow increase in cost of sales (+4.8% y/y), with cost-to-sales ratio declining by 308bps y/y to 70.1% (Q3-24: 73.2%).
This reflects improved local sourcing and lower reliance on imported inputs, supported by easing inflation and FX stability — a notable turnaround from last year’s sharp cost pressures (+84.2% y/y in Q3-24).
Benefiting from an improved gross margin and better operating leverage, EBITDA margin expanded by 16.29 ppts y/y to 21.7% in Q3-25, (9M-25: +50.99ppts y/y to 24.6%), despite a 33.9% y/y rise in OPEX tied to brand-building investments.
Below the operating line, net finance income improved by 12.8% y/y to NGN1.73 billion, largely driven by a 40.8% y/y decline in finance costs, indicating easing borrowing pressures.
Overall, INTBREW posted a profit before tax of N12.69 billion in Q3-25 (vs. pre-tax loss of N4.32 billion in Q3-24).
Eventually, profit after tax settled at NGN16.54 billion in the quarter (vs. loss after tax of N6.03 billion in Q3-24) supported by a tax credit of N3.85 billion compared to a tax expense of N1.71 billion in Q3-24.
The company reported earnings per share of N0.10 in Q3-25 (vs loss per share of N0.04 in Q3-24), translating to an earnings per share of N0.34 in 9M-25 (vs loss per share of N0.67 in 9M-24).
The improved earnings in the period was supported by stronger margin delivery, increased net finance income and a tax credit that further lifted profitability.
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