July 30, 2025/CSL Research
Financial Highlights:
- Revenue +53.9% y/y to N738.14BN
- Cost of Sales +33.4% y/y to N427.14BN
- OPEX +31.9% y/y to N159.45BN
- EBITDA +180.8% y/y to N186.30BN
- Operating Profit +298.3% y/y to N151.90BN
- Profit before Tax of N132.25BN from a Loss before Tax N116.34BN
Stock Rating: UR
Nigerian Breweries Plc delivered a strong top-line performance in its unaudited H1 2025 results, with Revenue rising by 53.9% year-on-year (y/y) to ₦738.14 billion, compared to ₦479.77 billion in H1 2024. The impressive growth was primarily driven by the sustained implementation of price increases across key product lines, a strategic move that helped protect profit margins despite a challenging operating
environment.
In H1 2025, Cost of Sales rose by 33.4% year-on-year (y/y) to ₦427.14 billion, up from ₦320.08 billion in H1 2024. Notably, this increase was slower than revenue growth, contributing to a sharp improvement in profitability. As a result, Gross Profit nearly doubled, increasing by 94.8% y/y to ₦311.00 billion (H1 2024: ₦159.68 billion). This translated to a Gross Margin expansion of 8.8 percentage points, reaching 42.13%, up
from 33.28% in the same period last year. Operating Expenses (OPEX) rose by 31.9% y/y to ₦159.45 billion, up from ₦120.90 billion in the prior year. Within this, Administrative Expenses grew 21.0% y/y to ₦28.78 billion (vs. ₦23.78 billion in H1 2024), while Selling and Distribution Expenses rose more sharply—up 34.5% y/y to ₦130.67 billion from ₦97.12 billion a year earlier.
Source: Company Data, CSL Research
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) grew 180.8% y/y in H1 2025 to ₦186.30 billion, compared to ₦66.35 billion for H1 2024. NB’s EBITDA Margin improved to 25.24%, up by 11.4 percentage points from 13.83% in H1 2024. Operating Profit also recorded strong momentum, rising by 298.3% y/y to ₦151.90 billion, from ₦38.14 billion in H1 2024.
he company’s Finance Income grew to ₦853.76 million, up from ₦332.47 million in the same period last year. Meanwhile, Finance Cost declined by 34.6% y/y, settling at ₦27.82 billion in H1 2025 compared to ₦42.54 billion in H1 2024. A key highlight of the period was a reversal in foreign exchange (FX) performance. Benefiting from greater stability in the FX market and reduced FX-related exposures, NB reported a Net FX Gain of ₦7.32 billion, compared to a Net FX Loss of ₦112.27 billion in H1 2024. As a result, Net Finance Cost fell sharply to ₦19.65 billion, a marked improvement from ₦154.48 billion recorded a year earlier.
These improvements translated to a Pre-Tax Profit of ₦132.24 billion in H1 2025, reversing the ₦116.34 billion pre-tax loss recorded in the same period last year. After accounting for a Tax Expense of ₦43.83 billion (versus a Tax Credit of ₦31.14 billion in H1 2024), NB posted a Profit After Tax of ₦88.42 billion, compared to a Loss After Tax of ₦85.20 billion in the previous year.
Our recommendations are currently under review. Current Price ₦74.00/s
To read the full report, click on the link below
CSL Research Nigerian Breweries H1 2025 Quick Take .pdf
