October 24, 2025/InvestmentOne Report

Nigerian Breweries Plc delivered a strong performance through the first nine months of 2025, extending the earnings recovery that began in late 2024. The group posted revenue of NGN1,046.38bn, representing a 47.21% YoY increase from NGN 710.87bn in 9M:2024.

This impressive growth reflects sustained pricing actions implemented since Q1, steady volume recovery across premium and mainstream beer categories, and improved product mix optimization supported by Heineken s global portfolio. Cost of sales increased by 12.87% YoY to NGN204.09bn, substantially below the pace of revenue growth (33.41%), reflecting progress in mitigating the impact of imported input inflation through local sourcing.

As a result, gross profit rose by 107.33% to NGN104.15bn from NGN50.23bn in Q3:2024, driving a significant improvement in gross margin to 33.80% from 21.74%. The margin rebound underscores effective pricing and improved cost absorption as inflationary pressures reduce and persistent FX remains relatively stable in the year. 

Nigerian Breweries is well positioned to consolidate its earnings rebound. As the company has reduced foreign currency exposure and expanded production capacity, 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 any currency volatility and help preserve margins.

Furthermore, we expect the organization to continue to grow as it integrates the process and products from the recent purchase of Distell. We hence place a STRONG BUY 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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