October 23, 2025/Cordros Report
Nigerian Breweries Plc (NB) published their Q3-25 unaudited results yesterday, reporting a loss per share of NGN0.13 (Q3-24: loss per share of NGN6.35), primarily due to a one-off impairment charge of NGN6.08 billion arising from post-acquisition fair value adjustments linked to the full integration of Distell Wines and Spirits Nigeria Limited into the group’s operations. Consequently, 9M-25 EPS settled at NGN2.75, compared to a loss per share of NGN14.55 in 9M-24, reflecting a marked turnaround in operational performance.
Revenue grew by 33.4% y/y in Q3-25 (9M-25: +47.2% y/y), reflecting resilient pricing, gradual volume recovery compared to 2024, and sustained growth in the premium portfolio. 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 y/y to 33.8% (Q3-24: 21.7% | 9M-25: + 101bps y/y to 39.7%), supported by the robust revenue growth and easing cost pressures, as cost of sales grew slower (+12.8% y/y) supported by improved input cost management and pricing discipline, as volume recovery remained gradual relative to the depressed 2024 base.
Operating expenses (OPEX) rose by 56.7% y/y to NGN93.98 billion, primarily driven by a 120.2% y/y increase in administrative expenses (linked to one-off restructuring and integration costs from Distell) and a 37.4% y/y 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% (Q3-24: -3.9% and 2.1%) respectively, supported by operational efficiency, better cost absorption, and disciplined pricing actions.
Net finance charges fell by 81.9% y/y to NGN14.00 billion, reflecting reduced debt costs (-61.6% y/y) and net FX gain of NGN2.94 billion (compared to the FX loss of NGN48.21 billion in Q3-24), cushioning the impact of the one-off impairment charge of NGN6.08 billion in the period (Q3-24: nil). 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.
Overall, NB recorded a pre-tax loss of NGN2.77 billion in Q3-25 (Q3-24: loss of NGN86.66 billion), with tax expense of NGN138.73 million (vs tax credit of NGN22.36 billion in Q3-24). Consequently, loss after tax settled at NGN2.91 billion (vs loss of NGN64.30 billion recorded in Q3-24).
Comment: 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, we expect Q4 performance to benefit from festive-driven consumption, easing input costs, continued execution on cost optimisation and pricing discipline. Overall, NB remains on track to close the year stronger. Our estimates are under review.
