Paragraph 1: Resurgence and Record-Breaking Performance
Nigerian Breweries Plc has emerged from a challenging period with a resounding return to profitability in the first quarter of 2025. The company’s unaudited financial results reveal a remarkable turnaround, marked by a 186% surge in net profit compared to the same period in 2024. This resurgence is underscored by a substantial 68.9% increase in revenue, reaching N383.6 billion, compared to N227.1 billion in Q1 2024. This impressive performance signifies a significant shift in the company’s financial trajectory, setting the stage for a potentially successful year.
Paragraph 2: Drivers of Profitability and Financial Health
Several key factors contributed to Nigerian Breweries’ robust financial performance in Q1 2025. A significant reduction in net finance expenses, plummeting by 83% to N15.3 billion from N90.8 billion in Q1 2024, played a crucial role in boosting profitability. This cost reduction, coupled with the revenue growth, propelled the company’s net profit to N44.6 billion, a stark contrast to the N52.1 billion loss recorded in the same period of the previous year. This positive shift is further reflected in the basic earnings per share, which recovered sharply to 143 kobo from a negative 627 kobo in Q1 2024, indicating improved shareholder value.
Paragraph 3: Asset Management and Strategic Investments
Nigerian Breweries demonstrated a strategic approach to asset management and investment during the first quarter of 2025. The company’s total assets saw a slight increase to N1.14 trillion, up from N1.13 trillion at the end of 2024. This growth was driven by continued investment in property, plant, and equipment, which rose to N540.44 billion from N535.27 billion in the previous quarter, signaling a commitment to enhancing production capabilities and maintaining a strong operational foundation. While intangible assets and goodwill saw a marginal decline, investments surged to N150 million, indicating a proactive strategy to diversify and strengthen its financial portfolio.
Paragraph 4: Liquidity, Inventory, and Equity Enhancement
The company’s financial health was further strengthened by improvements in liquidity, inventory management, and equity. Cash and cash equivalents stood at a healthy N93.08 billion, while inventory levels saw a slight increase, reflecting effective management of raw materials and finished goods. Notably, equity attributable to the owners of the company grew to N506.70 billion, up from N463.03 billion in December 2024. This growth was largely driven by an improvement in retained earnings, further solidifying the company’s financial stability and demonstrating prudent resource allocation.
Paragraph 5: Liability Management and Shareholder Support
Nigerian Breweries effectively managed its liabilities, resulting in a decrease in total liabilities to N637.65 billion from N674.33 billion in the previous quarter. This reduction was primarily attributed to a decrease in loans and borrowings, highlighting the company’s efforts to optimize its debt structure. Furthermore, the successful 2024 Rights Issue, which was 92% subscribed, underscored the strong support from shareholders and provided the company with additional capital to pursue its growth strategies.
Paragraph 6: A Look Back at 2024 and Future Outlook
The positive Q1 2025 results follow a significant milestone for Nigerian Breweries: achieving an unprecedented revenue of N1.1 trillion in the 2024 financial year. This achievement, coupled with the strong Q1 2025 performance, paints a promising picture for the company’s future. The successful Rights Issue, the reduction in finance costs, and the continued investment in operational capabilities all point towards a sustainable growth trajectory. The company’s board expressed gratitude for shareholder support, recognizing its crucial role in the company’s repositioning for long-term success. Looking forward, Nigerian Breweries appears well-positioned to capitalize on its current momentum and maintain its positive financial trajectory.
