International Breweries returns to profit in 2025 as revenue jumps 21%
Stronger sales growth and reduced foreign exchange losses helped International Breweries post its first profit in seven years, signaling improved financial stability amid a steadier naira environment.
NIGERIA – International Breweries Plc has reported its first profit in seven years for the financial year ended December 2025, supported by strong revenue growth and reduced foreign exchange losses, according to its audited financial results.
The AB InBev-controlled brewer posted a net profit of N51 billion (US$37.67M), a significant turnaround from the N113.6 billion (US$83.9M) loss recorded in 2024.
The recovery was largely attributed to improved macroeconomic stability, particularly a more stable naira, which reduced the impact of foreign exchange losses that had previously eroded earnings.
“The result marks a strong turnaround from a loss of N111.8bn in the prior year, driven largely by stronger revenue performance and reduced foreign exchange losses,” the company said in its report.
Revenue rose by 21 percent to N619 billion (US$457.18M), driven by price increases, improved sales volumes, and a more predictable operating environment. Gross profit increased to N209.6 billion (US$154.81M) from N131.35 billion (US$97.01M) in the previous year, reflecting stronger top-line performance despite persistent cost pressures.
The company noted that growth was entirely driven by the domestic market, stating that “100 per cent of sales were driven by its brewed products,” with distributors accounting for 99 percent of total volumes.
While cost of sales climbed to N409.4 billion (US$302.63M) due to higher input and production costs, profitability improved significantly at the operating level. Operating profit reached N82.8 billion, compared with a loss in the prior year, supported by a sharp reduction in other losses.
“Other losses dropped sharply to N2.8bn from N136.1bn due to reduced FX pressures,” the company stated, highlighting the impact of currency stability on its financial performance.
In 2024, the brewer had faced substantial foreign exchange-related losses exceeding N166 billion (US$122.71M), driven by currency devaluation and hedge revaluations, which significantly weighed on its bottom line.
The improved performance also translated into better shareholder returns, with earnings per share rising to N0.30 from a loss of N1.16 per share in 2024.
The company’s balance sheet strengthened, with total equity increasing to N499.8 billion (US$368.84M) while total liabilities declined to N239.9 billion (US$177.04M).
Despite the return to profitability, the company did not declare a dividend. It noted that “retained losses on the balance sheet narrowed to N191.03bn (US$140.93M) from N241.9bn (US$178.46M); hence, no dividend was declared,” indicating a continued focus on strengthening its financial position.
The results reflect a period of recovery for the brewer as it works to rebuild profitability and stabilize operations following years of financial strain.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
