International Breweries returns to profitability with US$39.17M gain after seven years of losses 

NIGERIA – International Breweries Plc (IBPLC), the Nigerian subsidiary of AB InBev, has recorded a strong turnaround in its financial performance, posting a profit after tax of N57.83 billion (US$39.17M) for the nine months ended September 30, 2025.  

This marks the brewer’s first return to profitability in seven years, reversing a N112.8 billion (US$77.52M) loss recorded in the same period of 2024. 

The company’s unaudited results indicated that revenue surged by 38% to N472.57 billion (US$324.77M) from N343.45 billion (US$236.03M) last year, supported by higher sales volumes and improved pricing across its beer and beverage categories.  

The cost of sales rose at a slower pace of 25% to US$214.17M, resulting in a gross profit of US$110.59M, up fromUS$65.19M in 2024. 

Administrative, marketing, and distribution expenses increased by 27% to US$63.29M, driven by inflationary pressures, logistics costs, and expanded marketing campaigns for its key brands.  

However, operating profit stood at N67.01 billion (US$, compared to a US$86.18M operating loss in the prior year. 

A key factor in the recovery was a significant decline in other expenses, which fell to US$1.2M from US$101.42M in 2024. This improvement was largely attributed to unrealised foreign exchange gains of US$5.99M and lower realised FX losses of US$9.28M, well below the US$109.37M losses recorded last year when the naira depreciated sharply. 

Finance costs also decreased substantially to US$4.21M from US$2.55M, reflecting reduced interest expenses and the absence of major borrowings following the company’s debt repayments.  

Conversely, finance income more than doubled to US$9.16M, supported by interest from short-term investments and stronger cash management. This led to a net finance income of US$4.95M, compared to a net finance loss of US$20.03M in 2024. 

Profit before tax rose to US$51M, reversing a US$106.21M loss in the prior year. After accounting for tax expenses of US$11.26M, profit after tax closed at US$39.74M, representing a net margin of 12%. 

The brewer generated US$26.39M in operating cash flow, compared to an outflow of US$7.49M last year, signalling improved working capital efficiency.  

Capital expenditure increased to N86 billion, reflecting continued investment in capacity expansion, automation, and energy efficiency at its Sagamu and Ilesa facilities. 

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