There is good tidings for beer drinkers who are paying for alcohol through their nose as Nigerian Breweries Plc has returned to the path of profitability, following naira stability and balance sheet deleveraging.
For the first three months through March 2025, Nigeria Breweries’ posted profit after tax (PAT) of N44.5 billion from a loss position as at March 2023.
Revenue increased by 68.91 percent to N383.63 billion as at March 2025, positioning the company to sustain its N1 trillion revenue milestone by the end of the year as the sales were bolstered by effective pricing strategies and favorable product mix.
The impressive performance was largely driven by a balance sheet deleveraging strategy as the beer maker had issued a rights issue which reduced financial obligations by annihilating foreign exchange related losses.
Additionally, there was a reduction on foreign revaluation exchange losses on the back of relative stability in the foreign exchange rate as the local currency Naira appreciated by 1 basis point in the first quarter of 2025, which underscores the efficaciousness of the policies of the president Bola Tinubu’s government.
Nigeria’s Purchasing Managers Index (PMI) recorded expansion for the third consecutive month, in March 2025.
Data from the Central Bank of Nigeria (CBN) revealed that the PMI for March 2025 stands at 52.3 points from 51.4 points in February 2025, indicating expansion in economic activities.
The industry sector recorded an expansion to 51.5 points, the third consecutive increase. Similarly, the services sector showed expansion with a score of 51.5 points during the review month. The agriculture sector continued its growth, achieving 54.7 points for its eighth consecutive month of expansion in March 2025.
Further analysis of the financial statement of Nigerian Breweries shows net loss on foreign exchange transactions dipped to N178,011 from N72.84 billion the previous year.
There were improvements in margins, thanks to cost efficiency and revenue growth.
The return to the path of profitability offers a glimmer of hope of price reduction by the beer maker.
