Nigerian Breweries breaks Losing Spell
Nigerian Breweries reported a 186 percent increase in net profit over the same period in 2024, signaling a return to profitability.
Quick overview
- Nigerian Breweries reported a 186% increase in net profit for the first quarter of 2024, reaching N44.6 billion.
- The company experienced a 238% rise in operating profit, climbing to N85.3 billion from N25.3 billion.
- A significant 83% reduction in net finance expenses contributed to the company's return to profitability.
- Total assets increased slightly to N1.14 trillion, while liabilities decreased to N637.65 billion due to reduced loans and borrowings.
Nigerian Breweries reported a 186 percent increase in net profit over the same period in 2024, signaling a return to profitability. The company’s revenue was N383.6 billion in the first quarter, as released on the Nigerian Exchange Limited
The Nigerian Brewery giant also reported a staggering 238 percent increase in operating profit, which jumped to N85.3 billion from N25.3 billion in the first quarter of 2024.
The company’s return to profitability was largely attributed to the notable 83 percent decrease in net finance expenses, which dropped to N15.3 billion from N90.8 billion in the first quarter of 2024. This decrease in financing expenses contributed to the company’s N44.6bn net profit, which reversed the N52.1 billion loss from the first quarter of 2024.
The company’s basic earnings per share (EPS) for the first quarter of 2025 were 143 kobo, a significant improvement over the 627 kobo negative EPS for the same period in 2024. Nigerian Breweries reported total assets of N1.14 trillion as of December 31, 2024, a slight increase from N1.13 trillion. This is indicated by the company’s ongoing investment in property, plant, and equipment, which grew to N540.44 billion from N535.27 billion in the prior quarter.
The company’s liquidity improved, as cash and cash equivalents decreased from N150.59bn to N93.08 billion. Inventory levels increased marginally from N181.26 billion to N184.27 billion, indicating effective raw material and finished goods
Equity attributable to the company’s owners increased from N463.03 billion in December 2024 to N506.70 billion because of a surge in retained earnings. The company’s financial position was further strengthened when retained earnings rose from N169.8 billion to N126.33 billion.
The company’s liabilities dropped from N674.33 billion in the previous quarter to N637.65 billion. The primary cause of this decrease was a drop in loans and borrowings, which as of December 2024 had dropped by N5 billion to N235.25 billion from N240.17 billion.
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