Nigerian Breweries Plc, a key player in the beverage industry, has reversed its previous financial losses by reporting a net profit of N99.1 billion for the year 2025, thanks to more stable exchange rates.
The company's revenue surged by over a third to reach N1.5 trillion, marking its highest turnover to date, driven significantly by improved local sales, as detailed in its latest audited financial report released on Friday.
In 2024, the brewery had suffered considerable losses due to foreign exchange volatility, experiencing a significant N157.6 billion loss from foreign exchange fluctuations. This depreciation of the naira had forced the brewer, which imports about 40% of its raw materials, to record an after-tax loss of N144.9 billion, its largest ever.
The strong performance this year was further attributed to the complete acquisition of Distell Wines and Spirits Nigeria Limited last March, which expanded the company's product portfolio to include wines and spirits, enhancing sales.
Regarding its performance, the company noted that the acquisition brought in new brands such as Amarula Cream Liqueur, Nederburg, and Drostdy-Hof into its lineup.
While Nigerian Breweries thrived, its parent company, Heineken, reported just a 4.4% increase in adjusted operating profit for 2025 due to declining beer demand, leading to plans to reduce its workforce by 5,000 to 6,000 workers through productivity improvements driven by AI.
In a statement, Nigerian Breweries highlighted its rebound in 2025 from a challenging previous year, with strong revenue gains attributed to macroeconomic factors.
It also mentioned that group operating profit surged by more than 190%, which was driven by revenue growth, stringent cost management, increased productivity, and improved supply chain efficiencies as part of a recovery strategy initiated in 2024.
The company credited its return to profitability to a substantial reduction in net finance costs, which fell by 83% following a share sale to existing shareholders in 2024. This action permitted the firm to decrease its debt and minimise exposure to foreign currency fluctuations.
In financial results, profit before tax reached N161.1 billion compared to a pre-tax loss of N182.9 billion in the previous year, while profit after tax amounted to N99.1 billion, reversing last year's loss of N144.9 billion.
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