Nigerian Breweries Records N1.04tn Revenue in Nine Months

Nigerian Breweries Plc, the country’s leading beverage manufacturer, has announced a total revenue of N1.04 trillion for the first nine months of 2025, marking a significant improvement in sales performance despite persistent inflationary pressures, foreign exchange volatility, and rising production costs.The company disclosed this in its unaudited financial statement for the nine-month period ended September 30, 2025, where it reported steady growth in revenue driven by strong consumer demand and the resilience of its premium and mainstream brands.

According to the statement, the brewer achieved a notable recovery in volume sales, supported by improved distribution networks, strategic price adjustments, and the company’s continued investment in marketing and innovation. The revenue figure represents an increase compared to the N940 billion recorded during the same period in 2024, reflecting a 10.6 percent year-on-year growth.

Nigerian Breweries attributed the positive performance to its diversified product portfolio, which includes Star Lager, Gulder, Amstel Malta, Heineken, Fayrouz, and other value brands that continue to dominate Nigeria’s beverage market. The company’s premium segment, particularly Heineken and Tiger Beer, showed strong growth as consumer preferences shifted toward higher-quality products.

In a statement accompanying the results, the company’s Managing Director, Hans Essaadi, said the nine-month performance demonstrated the group’s ability to adapt and thrive amid Nigeria’s challenging macroeconomic environment. He noted that while the business environment remained tough, Nigerian Breweries’ operational efficiency and strategic investments helped cushion the impact of rising input costs.

“We remain focused on executing our long-term growth strategy, maintaining cost discipline, and strengthening our brand equity. Despite foreign exchange pressures and inflation, we continue to leverage our scale, innovation, and operational excellence to deliver value to our shareholders,” Essaadi said.

The company’s financial report also revealed that cost of sales rose by 8.4 percent, driven mainly by higher energy costs and imported raw materials. Operating profit before tax stood at N47.3 billion, compared to N42 billion in the corresponding period last year. This modest improvement was largely supported by ongoing cost-optimization measures and increased local sourcing of raw materials such as sorghum and cassava.

Nigerian Breweries’ net finance costs, however, increased due to the continued depreciation of the naira and higher interest rates in the domestic financial market. The company stated that its management had implemented various hedging strategies to mitigate foreign exchange losses and maintain liquidity stability.

Despite the financial pressures, Nigerian Breweries reaffirmed its commitment to sustainability and community development initiatives across its host communities. The company highlighted its investments in renewable energy, water conservation, and recycling programs as part of its “Brew a Better World” sustainability agenda.

During the review period, Nigerian Breweries also expanded its renewable energy projects at several of its breweries. The company said the ongoing solar and biomass energy initiatives have reduced its carbon footprint and lowered operational costs, aligning with its commitment to achieving net-zero emissions in the long term.

Essaadi added that Nigerian Breweries will continue to prioritize innovation to meet changing consumer preferences. He noted that the company’s expansion into the non-alcoholic beverage segment and the introduction of new flavored drinks had positively influenced its revenue streams.

Industry analysts have commended Nigerian Breweries for maintaining growth amid the tough economic landscape, noting that its performance underscores the resilience of Nigeria’s fast-moving consumer goods (FMCG) sector. An equity research analyst at Meristem Securities, Tunde Afolabi, said the brewer’s ability to sustain double-digit revenue growth despite economic headwinds shows strong brand loyalty and effective pricing strategies.

“The N1.04 trillion revenue mark is impressive, especially given the currency depreciation and consumer spending squeeze. Nigerian Breweries has shown that its operational efficiency and brand strength remain unmatched in the industry,” Afolabi remarked.

Meanwhile, the company said it would continue to focus on improving supply chain efficiency and expanding its market presence in key cities across Nigeria. Efforts are underway to strengthen partnerships with distributors and enhance the use of technology in logistics and retail engagement.

On the outlook for the remainder of 2025, Nigerian Breweries expressed optimism that ongoing government reforms aimed at stabilising the exchange rate and improving energy supply will positively impact the manufacturing sector. However, the company cautioned that rising inflation and import dependency for certain raw materials could still pressure its margins.

“We are hopeful that the policy environment will continue to support local production and encourage manufacturers like us to deepen investment in Nigeria’s economy,” the statement read.

The brewer reaffirmed its commitment to its shareholders and said it remains on course to sustain profitability and deliver long-term growth. It also assured that its strategic focus would remain on innovation, local sourcing, and digital transformation to enhance operational resilience.

Nigerian Breweries, which is majority-owned by Heineken N.V., operates 11 breweries and two malting plants across Nigeria. The company remains one of the largest employers in the country’s manufacturing sector, directly and indirectly supporting over 200,000 jobs through its value chain.

With this robust performance, industry observers predict that the company could end the year with one of its strongest earnings in recent times if economic reforms and consumer spending patterns remain stable in the final quarter.