February 16, 2026/Cordros Report

Nigerian Breweries Plc (NB) published their Q4-25 unaudited financials on 13 February, reporting an 82.3% y/y decline in standalone EPS to NGN0.44, bringing full-year 2025 EPS to NGN3.19 (2024FY: loss per share of NGN12.07). The decline in EPS is primarily due to the effect of the rights issue in December 2024, which brought the total weighted number of outstanding shares to 30.98 billion (2024FY: 12.00 billion). In nominal terms, however, profit after tax surged by 194.4% y/y in Q4-25 (2025FY: PAT of NGN99.10 billion vs. loss after tax of NGN144.88 in 2024FY), supported by strong topline growth (+12.7% y/y) and significantly lower net finance costs (-49.5% y/y).

Revenue grew by 12.7% y/y in Q4-25 (2025FY: +35.3% y/y), supported by festive-driven consumption, sustained premiumization efforts, and higher pricing. The strong festive season performance reflects increased consumer demand for the company’s premium brands. On a q/q basis, revenue surged by 36.6%, highlighting the seasonal strength typical of the fourth quarter.

Gross margin expanded by 619bps y/y to 35.6% in Q4-25 (2025FY: +901bps y/y to 38.5%), as cost of sales growth (+2.8% y/y) lagged topline expansion, indicating improved operational efficiency and better input cost management. The slight growth in cost of sales reflects higher raw material and consumable costs (+13.2% y/y).

Meanwhile, operating expenses rose by 56.7% y/y (2025FY: +44.7% y/y), driven by higher selling & distribution expenses (+41.5% y/y) and administrative costs (+158.9% y/y), reflecting intensified market support activities during the peak festive season. Consequently, EBIT and EBITDA margins contracted by 90bps y/y and 170bps y/y to 10.0% and 16.0%, respectively, in Q4-25. However, both metrics improved significantly on a full-year basis (2025FY: +750bps y/y and +580bps y/y to 14.0% and 19.3%, respectively), driven by strong operating leverage.

Further down the operating line, net finance costs fell by 49.5% y/y to NGN10.48 billion in Q4-25, driven by a sharp decline in interest expense on loans and borrowings (-77.0% y/y to NGN5.99 billion) and a net FX gain of NGN7.05 billion (vs FX loss of NGN316.59 billion in Q4-24). Similarly, for the 2025FY period, net finance costs declined significantly by 82.5% y/y to NGN44.14 billion, driven predominantly by lower interest expense on loans and borrowings (-54.1% y/y to NGN44.99 billion) and a sharp reversal to a net FX gain of NGN0.75 billion (vs FX loss of NGN157.59 billion in 2024FY).

Overall, NB’s profit before tax increased by 57.3% y/y to NGN31.59 billion in Q4-25, while profit after tax grew significantly by 194.4% y/y to NGN13.59 billion. For 2025FY, profit before tax settled at NGN161.06 billion (2024FY: pre-tax loss of NGN182.92 billion) while profit after tax settled at NGN99.10 billion (2024FY: loss after tax of NGN144.88 billion).

Comment: NB’s Q4-25 performance capped off a decisive turnaround year, with festive-driven volumes, disciplined pricing, and improved cost absorption reinforcing the recovery narrative. While elevated seasonal OPEX compressed quarterly margins, full-year profitability was significantly bolstered by strong operating leverage and sharply lower net finance costs. Looking ahead to 2026FY, earnings are expected to benefit from sustained premiumisation, continued cost optimisation, and a more stable macroeconomic environment, although consumer affordability pressures and competitive intensity remain key monitorables. Our estimates are under review.