Cheers to Profit! Nigerian Breweries Bounces Back Strong in Q2 2025
Cheers to Profit! Nigerian Breweries Bounces Back Strong in Q2 2025
Great news from Nigerian Breweries Plc! The company, known for popular drinks like Star Lager Beer and Maltina, has just announced impressive financial results for the second quarter of 2025. They’ve made a remarkable turnaround, reporting a pre-tax profit of N43.87 billion – a huge recovery from the N33 billion loss they faced in the same period last year.
This strong performance in Q2 means their total pre-tax profit for the first half of 2025 (January to June) now stands at N88.42 billion. This is a significant improvement, especially when compared to the N85.20 billion loss they had in the first half of 2024. It clearly shows the company is back on a profitable track!

Breaking Down the Success:
More Sales! Revenue for Q2 2025 jumped by an impressive 40.8% compared to last year, reaching N354.51 billion. For the entire first half of the year, their total revenue soared to N738.14 billion, a remarkable 54% increase.
Smarter Costs: The company also got much better at managing its expenses. Their “gross profit” (money left after making the products) surged by 86% in Q2, hitting N144.43 billion. This happened because the cost of making their products grew much slower than their sales.
Operating Like a Champ: Their “operating profit” (what they earn from their main business operations before interest and taxes) really took off, growing by a massive 418% in Q2 to N66.63 billion. For the first half of the year, this figure reached N151.90 billion – more than double what they made in all of 2024!
Lower Debts and Costs: A major factor in this recovery was a significant reduction in their “finance costs” (money spent on loans and other financial charges). These costs fell substantially, partly thanks to the careful use of funds raised from a “Rights Issue” (where they sold new shares to existing shareholders). This helped them pay down debts and reduce foreign currency-related obligations, slashing their net financing costs by 87%.

What This Means for the Company:
This excellent performance highlights Nigerian Breweries’ strong foundation and their ability to adapt in a tough business environment. Their success is due to a mix of:
New ideas and products
Smart sales strategies
Optimized pricing (finding the right balance for their products)
Better cost management
Improved operations
On the balance sheet, while their total assets slightly decreased, their retained losses (accumulated past losses) dropped by over 50%, which is fantastic news! This helped significantly boost the total funds belonging to shareholders to N549.48 billion.
Looking Ahead:
While the company expects sales volumes might moderate in the coming months due to people having less disposable income and typical third-quarter slowdowns, their focus remains clear: keep optimizing costs, execute their sales plans well, and strengthen their brands.

Additionally, their full ownership and integration of Distell Wines and Spirits Nigeria Limited is expected to create even more long-term value for their shareholders.
Investors are clearly happy, as Nigerian Breweries’ share price stood at N74 per share at the close of trading on July 29, 2025, showing an impressive 131% gain since the beginning of the year. It seems the market is raising a glass to their strong comeback!
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