Nigerian Breweries Posts N2.91bn After Tax Loss in Q3, EPS Breaks
With negative net income, Nigerian Breweries Plc reported a loss per share of N0.13 in the third quarter of 2025, a significant moderation from a loss per share of N6.35 in the equivalent period in 2024.
Its unaudited report revealed that earnings loss was primarily due to a one-off impairment charge of N6.08 billion that arose from post-acquisition fair value adjustments.
In its commentary note, Cordros Securities Limited hinted that the fair value was linked to the full integration of Distell Wines and Spirits Nigeria Limited into the group’s operations.
Consequently, the brewer company delivered N2.75 as earnings performance for nine months of financial year 2025, compared to a loss per share of N14.55 in 9M-2024.
In the third quarter of the year, Nigerian Breweries’ revenue grew by 33.4% year on year, reflecting resilient pricing, and gradual volume recovery compared to 2024, and sustained growth in the premium portfolio, according to analysts.
Revenue edged higher by +47.2% year on year for its 9 months of financial year 2025 period as consumer purchasing power improves. On a q/q basis, revenue declined by 13.1%, consistent with seasonal volume slowdown typically observed in the third quarter.
Gross margin expanded by 121bps year on year to 33.8%, up from 21.7% in Q3 2024 supported by the robust revenue growth and easing cost pressures.
Analysts reported that the company’s cost of sales grew slower at 12.8% year on year, supported by improved input cost management and pricing discipline, as volume recovery remained gradual relative to the depressed 2024 base.
On year on year, Nigerian Breweries reported 101 bps year on year gross profit growth, settling at 39.7% at the end of 9M-2025. Its operating expenses (OPEX) rose by 56.7% year on year to N93.98 billion, primarily driven by a 120.2% year on year increase in administrative expenses (linked to one-off restructuring and integration costs from Distell) and a 37.4% year on year rise in selling & distribution expenses, reflecting the company’s sustained market support activities.
Despite the sharp rise in OPEX, EBIT and EBITDA margins improved to 3.6% and 9.5% respectively, supported by operational efficiency, better cost absorption, and disciplined pricing actions, Cordros Securities Limited said in its update.
The company’s net finance charges fell by 81.9% year on year to N14.00 billion, reflecting reduced debt costs and net FX gain of N2.94 billion. This cushioned the impact of the one-off impairment charge of N6.08 billion in the period, analysts said.
“We believe the charge reflects post-acquisition fair value adjustments and asset rationalisation as the group aligns Distell’s operations with their broader portfolio strategy”, Cordros Securities Limited said in its commentary note.
Overall, NB recorded a pre-tax loss of N2.77 billion in Q3-25 compared with a pretax loss of N86.66 billion in Q3 2024. Tax expense came at N138.73 million vs tax credit of N22.36 billion in Q3-24. Consequently, loss after tax settled at N2.91 billion compared with loss of N64.30 billion recorded in Q3-24.
Analysts at Cordros Securities Limited said despite the quarterly setback, the 9M-25 performance underscores a strong operational turnaround — supported by robust revenue growth, improved gross margins, and stabilized FX conditions.
“These improvements suggest that underlying fundamentals are strengthening, even as quarterly results remain affected by timing and one-off factors”.
Looking ahead, analysts at Cordros Securities Limited expect Q4 performance to benefit from festive-driven consumption, easing input costs, continued execution on cost optimisation and pricing discipline.
Overall, the investment firm said Nigerian Breweries remains on track to close the year stronger. Money Market Rates Ease as Financial System Liquidity Climbs
