NB Plc. Boosts Earnings, Settles FX Debt with Rights Issue
Nigerian Breweries (NB) Plc’s net profit strengthened in 2025 after the company raised capital from its existing shareholders to reduce its foreign currency liabilities.
The company returned to profitability in 2025 with a net profit of ₦99.10 billion, reversing the heavy losses recorded in the previous year due to lower net finance costs after the group deleveraged its balance sheet.
The company told analysts conference that FX debt has been eliminated following successive capital raises from rights issues to shareholders.
Revenue expanded by 35.33% to ₦1.47 trillion. This topline traction, combined with cost optimization boosted its speedy recovery.
2025 operating profit grew by over 193.50% year on year to ₦205.19 billion. Its net finance costs declined sharply by 82.54% as management reduced local and foreign debts.
In 2024, Nigerian Breweries profit performance was significantly affected by foreign currency debt and exposure to devaluation losses, driven by FX shortages in recent years.
“With increased FX purchases and rights issue proceeds we have eliminated our FX debt”, the company told analysts at investors conference held last week.
The company expects its reduced debt level would lead to higher credit ratings, reducing borrowing costs, and increasing funding options.
The brewer also said its 2025 profit positively impacted by pricing, mix, and cost savings. Net Profit benefits from lower finance costs and strong operational results.
In 2025, the Company made a rebound from what was a challenging year for the business in 2024 driven mainly by macroeconomic factors.
The year saw an improved but still volatile operating environment. Group revenue grew by 35%, supported by sustained innovation, premiumisation, right pricing, and strong commercial execution.
Following 35% year-on-year increase in revenue, Group recorded 168% growth in net profit, and a strong growth in operating profit, which grew by 194%, reflecting improved cost management, operational efficiency, and optimized pricing strategies amidst rising input costs
Net finance cost reduced significantly by 83% compared to the prior year, primarily due to the strategic utilization of proceeds from the company’s recent rights issue to retire interest-bearing debt.
Nigerian Breweries retained earnings remain negative due to the last two loss-making years, meaning dividends cannot be distributed yet; the company is in the right direction with profitability.
Cash flow from operations increased by 293% year on year to N288.893 billion, driven by growth in volume and increased products prices.
The company listed disposal of assets not in use as an opportunity to boost net asset turnover ratio, provide additional cash for investment prospects, and alleviate pressure on capital expenditures.
It was revealed that its cash balance serves as a hedge against uncertainties in the FX and can also yield returns from short-term investment opportunities.
Strong working capital position and cash flow will reduce short-term borrowings and improve supplier relationships. Nigerian Breweries said there is a need to reduce stock cover to prevent capital from being tied up in inventory.
For 2026, Nigerian Breweries hinted at focusing on bringing back volume growth and sustained its financial recovery. The company revealed plan to continues its costs management strategy and leverage scale and capacity to drive earnings growth in 2026.
Nigerian Breweries acknowledged that the macroeconomic outlook shows signs of improvement; however, operating conditions still remain challenging and volatile.
“High inflation and interest rates continue to pressure costs, pricing, and consumer demand. Though stable, exchange rate is still high, impacting input costs.
“Borrowing costs driven by tight monetary policy continue to increase financing expenses. Pressure on consumer purchasing power remains evident, affecting demand patterns and product mix across segments.
“FX harmonisation, subsidy removal, and tax reforms create short-term volatility, but long-term stability is anticipated. Energy and infrastructure costs (power, fuel, logistics) continue to influence operating expenses and capital allocation decisions”.
Trading data from the Nigerian Exchange on Monday showed that the brewer share price has increased to N80.5, up by 3.11% Nestlé Nigeria: Momentum Repriced by Fundamentals, Not Speculation
