International Breweries Plc has experienced a significant financial turnaround in the second quarter of 2025, reporting a profit after tax of N11.9 billion compared to a substantial loss of N47.3 billion during the same period in 2024. This remarkable recovery highlights a positive shift in the company’s financial performance, driven by increased revenue and improved cost management. The company’s revenue for Q2 2025 reached N167.4 billion, a substantial increase from N120 billion in Q2 2024. This growth in revenue contributed significantly to the improved profitability, indicating a strong demand for the company’s products and potentially successful strategic initiatives implemented during the period.
The growth in revenue translated into a higher gross profit of N61.9 billion in Q2 2025, compared to N33.8 billion in the corresponding quarter of the previous year. This improved gross profit margin suggests enhanced efficiency in production and cost control measures. While operating expenses, including administrative, marketing, and distribution costs, increased to N31.8 billion from N27.2 billion, the rise was proportionally less than the increase in revenue and gross profit, demonstrating the company’s efforts to manage operational costs effectively.
A crucial factor contributing to the profit turnaround was the significant improvement in net finance income. In Q2 2025, the company recorded a net finance income of N1.9 billion, a stark contrast to the net finance cost of N21.9 billion incurred in Q2 2024. This positive shift indicates a successful management of financial resources and potentially lower interest expenses or improved returns on investments. Consequently, the company’s profit before tax reached N26.5 billion, a substantial improvement from the loss before tax of N61.8 billion reported in the same quarter of the previous year.
After accounting for income tax expenses of N14.5 billion, International Breweries Plc posted a net profit of N11.9 billion, effectively reversing the substantial loss incurred in Q2 2024. This translated to earnings per share of seven kobo, a significant improvement from the loss per share of 176 kobo in the previous year. The positive turnaround in profitability reflects the company’s improved financial health and operational efficiency.
Despite the positive profit performance, the company’s total assets decreased slightly to N706.6 billion as of June 30, 2025, compared to N727.9 billion at the end of 2024. However, the company’s total equity increased to N490.2 billion from N448.9 billion in the previous year, indicating improved financial stability. Furthermore, retained losses decreased to N200.7 billion, signifying a reduction in accumulated losses from prior periods, further strengthening the company’s financial position.
In terms of cash flow, International Breweries Plc experienced a net cash outflow of N22.1 billion during the first half of 2025, primarily attributed to investment activities and financing payments. While the net cash outflow might raise some concerns, it is essential to consider the nature of the investments and financing activities. If these activities are directed towards strategic growth initiatives and debt reduction, they could potentially contribute to long-term financial health and profitability. Overall, the second-quarter results of 2025 demonstrate a significant positive turnaround for International Breweries Plc, driven by increased revenue, improved cost management, and a favorable shift in net finance income. The increased profitability, coupled with improved equity position and reduced retained losses, indicates a promising outlook for the company’s future performance.
