Nigerian Breweries Plc (NB), one of Nigeria’s oldest and largest brewers, has recorded a major turnaround in its 2025 half-year financial results, reporting strong revenue growth and a return to profitability after a turbulent 2024.
The company announced a ₦738.14 billion revenue in the first half of 2025, representing a 53.85% surge from ₦479.77 billion posted during the same period last year. The brewer also moved from a ₦85.2 billion loss in H1 2024 to a ₦88.42 billion profit after tax in H1 2025 — a swing of more than ₦170 billion within a year.
According to its financial statements, the company has already achieved about 68% of its 2024 full-year turnover, positioning it for one of its strongest fiscal years in recent history.
Growth Fueled by Revenue Strength and Cost Discipline
Nigerian Breweries’ recovery was driven by a combination of higher sales volumes, strategic price adjustments, and improved cost management. Revenue climbed steadily throughout the second quarter, reaching ₦354.51 billion, while gross margins expanded to 42.13%, supported by slower growth in cost of sales (up 33.45% year-on-year).
The brewer also benefited from a sharp decline in finance costs following its rights issue in 2024, which helped reduce foreign currency exposure and interest payments. These improvements have created room for better cash generation and operational efficiency.
Beyond Beer: A Broad Beverage Empire
While best known for iconic lagers such as Star, Gulder, and Heineken, Nigerian Breweries has evolved into a diversified beverage powerhouse. Its product lineup now includes Legend Stout, Amstel Malta, Fayrouz, and an expanding portfolio of wines and spirits through the acquisition of Distell Nigeria in March 2025.
The company distributes across multiple channels — retail markets, on-trade outlets like bars and restaurants, and off-trade distributors — giving it unmatched reach and brand loyalty across the country.
This diversity has been a strategic advantage, allowing NB to defend market share and pass through price increases even in a high-inflation environment.
Where the Billions Come From
NB’s robust revenue performance reflects resilient demand for alcoholic and non-alcoholic drinks amid improving consumer confidence.
Key financial highlights for H1 2025 include:
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Revenue: ₦738.14 billion, up 53.85% year-on-year
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Gross Profit: ₦310.99 billion, reflecting a 94.76% increase
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Operating Profit: ₦151.9 billion, with a 20.6% margin
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Profit After Tax: ₦88.42 billion, reversing a prior-year loss
The company attributes the growth to price adjustments, strong festive season sales, and the successful integration of Distell Wines & Spirits Nigeria, which broadened its premium product offering.
Competition and Market Position
Despite growing competition, Nigerian Breweries remains the largest player in Nigeria’s beer market. In comparison, International Breweries reported ₦340.99 billion in revenue in H1 2025, while Guinness Nigeria recorded ₦259.6 billion — both reflecting healthy sectoral growth but still far behind NB in scale and distribution reach.
How the Brewer Spends Its Billions
In the first half of 2025, Nigerian Breweries maintained a disciplined approach to cash deployment:
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₦31.1 billion invested in property, plant, and equipment
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₦116.84 billion used for debt repayment
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₦43.8 billion paid in taxes to government
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₦19.65 billion in net finance costs, a significant drop from ₦154.48 billion in H1 2024
The company also recorded a ₦7.32 billion foreign exchange gain, reversing the massive losses it faced the previous year, while maintaining cash reserves of ₦77.7 billion.
Creating Value for Stakeholders
Nigerian Breweries’ operations directly benefit thousands across its value chain. Over 3,000 employees receive wages, pensions, and benefits; government revenues rise through taxes and excise duties; and shareholders gain from stronger retained earnings and a healthier equity base of ₦549.5 billion, up from ₦463.9 billion a year earlier.
The brewer’s steady investment in equipment, debt reduction, and innovation signals a clear strategy for long-term stability and expansion.
Outlook: Brewing Confidence for the Future
Analysts say NB’s 2025 half-year performance underscores its resilience in navigating Nigeria’s volatile economic environment. By tightening cost controls, deleveraging its balance sheet, and expanding its beverage mix, the company has positioned itself to sustain profitability even in challenging conditions.
If the growth trajectory continues through the second half, Nigerian Breweries could surpass its 2024 performance and further consolidate its leadership in the country’s fast-moving consumer goods sector.
With stronger fundamentals and a revitalized product portfolio, the brewer appears ready to keep Nigeria’s favorite drinks — from beers to malts and spirits — flowing across bars, homes, and markets nationwide.
