Nigerian Breweries Plc (NGX: NB) has rebounded to profitability for the year ended December 31, 2025, after the losses recorded in 2024.
The brewer’s share price closed at ₦78 per share on Friday, with a 4.28% year-to-date gain on the Nigerian Exchange.
Revenue grew by 35% year-on-year to ₦1.47 trillion, from ₦1.08 trillion in 2024. Cost of sales rose by 18% to ₦902.24 billion, compared to ₦764.52 billion in the previous year.
As a result, gross profit surged by 77% to ₦565.18 billion, up from ₦319.92 billion, reflecting improved cost efficiency and stronger margins.
Administrative expenses increased to ₦82.85 billion, while marketing and distribution costs also remained elevated.
Other income rose slightly to ₦4.16 billion, indicating stable ancillary earnings.
Operating performance improved significantly, with operating profit jumping by 194% to ₦205.20 billion, compared to ₦69.90 billion in 2024.
Finance costs declined sharply to N45.9 billion from N257.1 billion in 2024.
Consequently, profit before tax stood at ₦161.06 billion, a major turnaround from the ₦182.92 billion loss recorded in 2024.
After a tax charge of ₦61.96 billion, profit after tax came in at ₦99.10 billion, reversing the ₦144.99 billion loss reported a year earlier.
Earnings per share improved to 319 kobo, from a loss per share of 1,207 kobo in 2024, highlighting the company’s return to profitability.
On the balance sheet, total assets declined by about 6% to ₦1.07 trillion, from ₦1.14 trillion in 2024, reflecting lower cash balances and working capital adjustments.
Major components of assets
- Property, plant and equipment remained the largest asset base at ₦585.31 billion.
- Inventories rose to ₦193.79 billion.
- Trade and other receivables increased to ₦69.40 billion.
- Cash and cash equivalents declined sharply to ₦61.14 billion, from over ₦150 billion in 2024.
Total liabilities declined significantly to ₦505.90 billion, from ₦674.33 billion in 2024.
Major components of liabilities
- Trade and other payables remained the largest liability item at ₦390.08 billion.
- Non current loans and borrowings dropped to N59.7 from N169.1 billion in 2024.
- Current tax liabilities stood at ₦32.24 billion.
- Employee benefit obligations were ₦14.25 billion, while provisions amounted to ₦6.84 billion.
- Dividend payable stood at ₦2.79 billion.
Total equity strengthened significantly to about ₦560.22 billion, from roughly ₦463.03 billion in 2024, supported by the return to profitability and prior capital restructuring, although retained earnings remain negative.
From a cash flow perspective, the company generated strong operating cash inflows. Net cash from operating activities stood at ₦228.18 billion.
However, investing activities recorded an outflow of ₦123.31 billion, mainly due to capital expenditure on property, plant and equipment and intangible assets.
Financing activities recorded a net outflow of ₦196.11 billion, driven largely by repayment of borrowings, interest payments, and dividend obligations.
As a result, cash and cash equivalents declined to ₦61.14 billion at year-end, from ₦150.59 billion in 2024.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
