Nigerian Breweries returns to profit as exchange rate stabilises

Beer-maker Nigerian Breweries Plc turned the tables on the negative earnings position it reported for 2024, following a phenomenal foreign exchange loss

The brewer posted a net profit of N99.1 billion last year, aided by stable exchange rates.

The local unit of Amsterdam-based Heineken NV took a hit from exchange rate volatility in 2024, when its reporting currency, the naira, depreciated sharply following a devaluation, setting it up for an N157.6 billion FX loss.

That also forced the company, which relies on imports for 40 per cent of its input costs, to book an after-tax loss of N144.9 billion that year, its highest on record.

Revenue for the maker of prominent brands such as Star, Gulder, Radler, Tiger, Maltina and Amstel increased by more than one-third to N1.5 trillion, its biggest turnover ever, driven by improved local sales, according to its audited report released on Friday.

Sales derived strength from a full acquisition last March of Distell Wines and Spirits Nigeria Limited, a transaction that broadened the brewer’s product mix, helping it to branch out into the production of wines and spirits.

The buyout added brands like Amarula Cream Liqueur, Nederburg, Drostdy-Hof, 4th Street, Bain’s Whiskey, Knight’s Whiskey, Scoƫsh Leader Whiskey, Chamdor wines, Hunters and Savanna to Nigerian Breweries’ portfolio.

It was a different fate for Heineken, the parent company, which reported tepid 4.4 per cent growth in adjusted operating profit for 2025 two days ago, owing to shrinking beer demand. Heineken has plans to axe between 5,000 and 6,000 jobs due to AI productivity savings as the demand outlook turns bleak.

“In 2025, the Company made a rebound from what was a challenging year for the business in 2024, driven mainly by macroeconomic factors. 2025 saw an improved but still volatile operating environment,” Nigerian Breweries said in a separate statement.

“Group operating profit grew by over 190%, reflecting the revenue growth, rigorous cost discipline, productivity gains, and supply chain efficiencies on the back of the 2024 business recovery plan,” it added.

The company attributed the recovery in net profit to an 83 per cent slide in net finance costs in the wake of a share sale to existing shareholders in 2024, proceeds of which helped it reduce debt and rid itself of foreign currency exposures.

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Loans and borrowings decreased to N59.7 billion from N169.1 billion, helping to reduce current liabilities by 21.3 per cent.

Finance cost during the period fell 82.1 per cent to N45.9 billion, with interest expense on loans dropping to N45 billion from N98 billion.

Profit before tax stood at N161.1 billion, compared to a loss before tax of N182.9 billion, while profit after tax came to N99.1 billion, in contrast to a loss after tax of N144.9 billion a year earlier.