August 01, 2025/InvestmentOne Report

Nigerian Breweries Plc delivered a strong performance in H1:2025, recording revenue of NGN 738.14 billion, a 53.88% increase from NGN 479.77 billion in H1:2024. This result builds on the company’s record FY:2024 revenue of NGN 1.08 trillion, which had grown by 80.85% from NGN 599.64 billion in 2023. The growth was supported by sustained price adjustments, recovery in volumes across premium and mainstream beer brands, and a better sales mix. Cost of sales rose by 33.43% to NGN 427.14 billion, remaining well below the pace of revenue growth. As a result, gross profit nearly doubled by 94.82% to NGN 311.00 billion, compared to NGN 159.68 billion in H1:2024, with gross margin improving to 42.09% from 33.28% in the prior year. This reflects effective pricing power and operational efficiency, which helped to offset persistent input cost pressures caused by inflation and currency depreciation. 

Nigerian Breweries is well positioned to consolidate its earnings rebound. The company has reduced foreign currency exposure and strengthened liquidity following its rights issue, while continuing to execute initiatives focused on cost control, operational efficiency, and volume growth. Its emphasis on increasing local sourcing of raw materials should provide a natural hedge against currency volatility and help preserve margins. The organization also continues to enjoy increased margins due to its premium brand products and is expected to continue. We hence place an 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 full production across all plants.

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