April 22, 2025/InvestmentOne Report

Total revenue for Q1:2025 reached NGN383.64 billion, marking a substantial 68.91% increase over the NGN227.12 billion recorded in Q1:2024. This growth comes on the heels of Nigerian Breweries’ record-breaking NGN1,084.44 billion full-year 2024 revenue, which had grown by 80.85% from NGN599.64 billion in 2023.  Despite this progress, cost pressures remained elevated. Cost of sales grew by 49.45% YoY to NGN217.07 billion in Q1:2025, up from NGN145.24 billion in Q1:2024. While the increase was significant, it remained below the growth rate of revenue, enabling gross profit to more than double from NGN81.88 billion to NGN166.57 billion — a 103.43% YoY increase. This represents a gross margin of 43.42%, a significant recovery from the 36.06% margin recorded in Q1 2024, though still below historical highs. 

In the near term, we expect the company to consolidate gains made from its rights issue by accelerating working capital optimization and reducing finance costs. The reduction in net debt and foreign exchange losses in Q1 is particularly notable and should remain a key earnings support as long as FX stability is maintained.

We hence place a OVERWEIGHT rating on NB as we are optimistic about the development of the organization and its intent to reduce debt burdens in the long term and hopefully go back to full production across all plants. Please click here to download the full report.