FRI APRIL 18 2025-theGBJournal| Nigerian Breweries Plc shares climbed 3.25% in after-hours trading on Thursday after the company delivered first quarter earnings that beat expectations on both the top and bottom lines and also reiterated confidence of its ability to navigate ongoing macroeconomic pressures.
Nigerian Breweries Plc reported 69% year-on-year revenue growth in the first quarter of 2025 (Q1-24: +84.2% y/y), building on the strong momentum from the last quarter of 2024. Earnings per share (N1.43) also beat expectation.
The come’s strong performance was primarily 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.
Nigerian Breweries gross margin rebounded, rising by 737bps y/y to 43.4% in Q1-25 (Q1-24: 36.1%), driven by strong revenue growth (+68.9% y/y), despite a 49.5% y/y increase in cost of sales.
This supported significant improvements in EBITDA (+979bps y/y) and EBIT (+11.10ppts y/y) margins to 26.4% and 22.2%, respectively, amid a 45.8% y/y increase in OPEX.
As anticipated, net finance costs fell sharply by 83.2% y/y to N15.27 billion (Q1-24: N90.85 billion), mainly due to a 99.8% y/y drop in FX losses.
Overall, NB reported a profit before tax of N69.99 billion in Q1-25, a sharp recovery from the N65.58 billion loss posted in Q1-24.
After accounting for a tax expense of N24.73 billion, NB reported a profit after tax of N44.55 billion (vs loss after tax of N52.09 billion in Q1-24).
The brewer’s performance was supported by reduced FX liabilities through the proceeds from the 2024 Rights Issue and a stable exchange rate during the period.
Also, the strategic initiatives introduced in 2024, including portfolio optimisation, rightsizing of operations, and disciplined working capital management, continue to yield strong results for the brewer.
Meanwhile, Nigerian Breweries said it is firmly on track in the execution of its turnaround plan, including restoring long-term profitability, and building a solid foundation for sustainable growth.
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