CAPITAL MARKET

Nigerian Breweries return to profitability in Q1 2025

•Records N1.14trn total asset

NIGERIAN Breweries Plc, in the first quarter of 2025, returned to profitability, having reported a 186 percent increase in its net profit compared to the same period in 2024.

According to the unaudited financial results released on the Nigerian Exchange Limited, the company’s revenue for the period ended March 31, 2025, stood at N383.6 billion, marking a significant 68.9 percent increase from N227.1 billion recorded in the first quarter of 2024.

Nigerian Breweries also reported a remarkable 238 percent rise in operating profit, which soared to N85.3 billion, up from N25.3 billion in the same period of 2024

A key factor in the company’s return to profitability was the significant reduction in net finance expenses, which fell by 83 percent to N15.3 billion, compared to N90.8 billion in the first quarter of 2024. This reduction in finance costs helped boost the company’s net profit, which stood at N44.6 billion, reversing the loss of N52.1 billion recorded in the first quarter of 2024.

The company’s basic earnings per share for the first quarter of 2025 stood at 143 kobo, a sharp recovery from the negative EPS of 627 kobo reported in the same period of 2024.

In terms of assets, Nigerian Breweries reported total assets of N1.14 trillion, reflecting a slight increase from N1.13 trillion as of December 31, 2024.

The company’s continued investment in property, plant, and equipment, which rose to N540.44bn from N535.27bn in the previous quarter, underscores its commitment to enhancing production capabilities and maintaining a robust operational foundation.

Additionally, Nigerian Breweries’ intangible assets and goodwill were valued at N99.35 billion, slightly down from N99.84 billion in the last quarter, while the company’s investments surged to N150 million, signalling a strategic approach to bolstering its financial portfolio.

The company also saw an improvement in its liquidity position, with cash and cash equivalents standing at N93.08 billion, down from N150.59 billion previously. Inventory levels increased slightly to N184.27 billion from N181.26 billion, reflecting efficient management of raw materials and finished goods.

Equity attributable to the owners of the company grew to N506.70 billion, up from N463.03 billion in December 2024, driven by an improvement in retained earnings. Retained earnings increased to N126.33 billion from N169.80 billion, further strengthening the company’s financial position.

On the liabilities front, the company’s total liabilities decreased to N637.65 billion from N674.33 billion in the previous quarter. This reduction was mainly due to a decrease in loans and borrowings, which fell by N5billion to N235.25billion from N240.17billion as of December 2024.

READ ALSO: The ultimate beer party is back: Nigerian Breweries launches ‘Big Weekend Experience 3.0’ nationwide tour

Kehinde Akinseinde-Jayeoba

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