Nigerian Breweries PLC Rebounds with N44.55 Billion Profit in Q1 2025, Reversing N52.09 Billion Loss

Nigerian Breweries PLC, a leading player in Nigeria’s beverage industry, reported a stellar performance in its unaudited condensed interim financial statements for Q1 2025, ending March 31, 2025.

The company, a subsidiary of Heineken N.V., showcased a significant profit of N44.55 billion for the group, a stark contrast to the N52.09 billion loss recorded in Q1 2024.

This remarkable turnaround underscores Nigerian Breweries’ resilience in navigating Nigeria’s challenging economic landscape.

Key financial metrics, including revenue, expenses, and cash flow, reflect strategic cost management and operational efficiency.

The company’s profit before tax reached N69.28 billion in Q1 2025, compared to a loss before tax of N65.58 billion in Q1 2024.

This improvement was driven by a favorable foreign exchange environment, with a gain of N1.32 billion on foreign exchange transactions versus a N31.58 billion loss in the prior year.

The significant profit growth suggests strong sales performance in the peak-selling season. The effective tax rate rose to 36% in Q1 2025 from 21% in Q1 2024, reflecting higher taxable income.

Nigerian Breweries’ ability to achieve such results highlights its strategic focus on cost optimization and market demand for its beverage portfolio.

Total assets stood at N1.14 trillion as of March 31, 2025, slightly up from N1.13 trillion at Q1 2024. Property, plant, and equipment remained the largest asset category at N540.44 billion. Current assets increased to N443.53 billion from N424.70 billion, fueled by a surge in trade and other receivables to N127.33 billion from N52.72 billion.

Cash and cash equivalents, however, declined to N93.08 billion from N150.59 billion, reflecting significant operational and investing activities. These figures underscore Nigerian Breweries’ robust asset base, critical for sustaining growth in Nigeria’s competitive beverage market.

Equity attributable to owners rose to N506.70 billion from N463.03 billion, driven by retained earnings of N126.33 billion, down from N169.80 billion due to profit allocation.

Total liabilities decreased to N637.65 billion from N674.33 billion, with a notable reduction in trade and other payables to N365.90 billion from N455.57 billion.

Loans and borrowings increased to N200.25 billion from N169.05 billion, indicating strategic debt financing to support operations. The company’s net cash coverage, calculated as interest-bearing debt minus cash, improved to N107.17 billion from N244.96 billion in Q1 2024. This strengthened financial position enhances Nigerian Breweries’ capacity to invest in growth opportunities.

Seasonality played a crucial role, with Q1 benefiting from festive demand and favorable weather, as noted in the financial statement.

The company’s related party transactions with Heineken N.V. remained consistent with 2024, conducted on arm’s length.

The financial statements, prepared under IFRS IAS 34, align with estimates and judgments from the 2024 annual report, ensuring consistency. These factors collectively enhance investor confidence in Nigerian Breweries’ Q1 2025 performance.

Nigerian Breweries PLC’s Q1 2025 earnings reflect a robust recovery, with a N44.55 billion profit, improved financial position, and strategic investments. The company’s ability to navigate economic challenges, including inflation and currency volatility, underscores its market leadership.

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