October 27, 2025/Cordros Report
International Breweries Plc (INTBREW) published their Q3-25 unaudited results this morning, reporting an earnings per share of NGN0.10 in Q3-25 (vs loss per share of NGN0.04 in Q3-24), translating to an earnings per share of NGN0.34 in 9M-25 (vs loss per share of NGN0.67 in 9M-24). The improved earnings in the period was supported by stronger margin delivery, increased net finance income and a tax credit that further lifted profitability.
INTBREW’s revenue grew by 9.4% y/y (9M-25: +37.6% y/y) in Q3-25 driven by price-mix gains amid softer-than-expected volume traction, as consumers remained highly price-sensitive in the period. Meanwhile, revenue declined by 21.4% on a quarter-on-quarter basis, reflecting seasonal volume moderation and price sensitivity among low-income consumers, which remains a challenge in value-centric segments.
The company delivered a strong margin recovery, with gross margin expanding by 308bps y/y to 29.9% (9M-25: +643bps to 34.0%) following a slow increase in cost of sales (+4.8% y/y), with cost-to-sales ratio declining by 308bps y/y to 70.1% (Q3-24: 73.2%). This reflects improved local sourcing and lower reliance on imported inputs, supported by easing inflation and FX stability — a notable turnaround from last year’s sharp cost pressures (+84.2% y/y in Q3-24).
Benefiting from an improved gross margin and better operating leverage, EBITDA margin expanded by 16.29 ppts y/y to 21.7% in Q3-25, (9M-25: +50.99ppts y/y to 24.6%), despite a 33.9% y/y rise in OPEX tied to brand-building investments.
Below the operating line, net finance income improved by 12.8% y/y to NGN1.73 billion, largely driven by a 40.8% y/y decline in finance costs, indicating easing borrowing pressures.
Overall, INTBREW posted a profit before tax of NGN12.69 billion in Q3-25 (vs. pre-tax loss of NGN4.32 billion in Q3-24). Eventually, profit after tax settled at NGN16.54 billion in the quarter (vs. loss after tax of NGN6.03 billion in Q3-24) supported by a tax credit of NGN3.85 billion compared to a tax expense of NGN1.71 billion in Q3-24.
Comment: INTBREW’s performance confirms a solid turnaround, with improved margins the key earnings driver — supported by tighter cost control, better local sourcing, and reduced FX pressures. Although sequential topline softness reflects ongoing price sensitivity, profitability continues to strengthen. Thus, we expect cost efficiencies and margin resilience to remain the primary earnings drivers, while volume recovery will be gradual given constrained consumer spending. Our estimates are under review.
