Nigerian Breweries Plc says it is leveraging the backing of its majority shareholder, Heineken, to drive growth and strengthen its operations.
Its Managing Director, Mr Thibaut Boidin, disclosed this on Thursday during the company’s 80th Pre-Annual General Meeting news conference in Lagos, where he presented the firm’s 2025 results and outlook for 2026.
“Our majority shareholder is Heineken, and that gives us strong financial power. We are able to leverage the strength of the Heineken Group across the world, and this is very important for our future,” he said.
He stated that the company recorded 35 per cent growth in revenue in 2025, while operating profit tripled compared to 2024, in spite of the challenging operating environment.
Boidin noted that the company returned to profitability, posting nearly N100 billion in net profit, its strongest performance in about a decade.
“I have to say that I’m very proud of these results. On all key metrics, we outperformed expectations. Revenue grew by 35 per cent, and we tripled our operating profit.
“For the first time in about 10 years, we delivered this level of net profit. It shows that the company has come out of the crisis and is now much stronger,” he said.
He noted that the business environment in 2025 remained volatile, driven by foreign exchange challenges, high inflation and weak consumer purchasing power.
“We are operating in a very complex environment. Even though it is more stable than previous years, inflation, borrowing costs and FX pressures are still very high and impacting the business,” he said.
According to him, pressure on consumers contributed to a decline in the overall beer market during the year.
“We saw significant pressure on purchasing power, and this explains why the overall beer market declined. This remains a concern for us,” he said.
Boidin said the company maintained a strong nationwide footprint, with nine breweries, one malting plant and 21 depots, giving it a competitive edge.
“We have a footprint that is quite unique in Nigeria. None of our competitors has this kind of presence across the country,” he said.
He added that the company recently reorganised its sales structure into three regions- North, West and East, to improve proximity to customers.
On policy, Boidin emphasised the importance of a stable fiscal environment, particularly regarding excise duties.
“We are happy that we now have a three-year excise plan. It gives us more predictability, which is important for our investment decisions,” he said.
He attributed the improved performance to disciplined cost management and innovation, as well as collaboration with partners.
Boidin noted that the company’s brand portfolio performed strongly, with both international and local brands driving growth and market share gains.
He said the company strengthened its Corporate Social Responsibility and Sustainability efforts in 2025, translating its “Brew a Better World” (BaBW) agenda into measurable actions.
He explained that the company’s initiatives were anchored on three core pillars: Environmental, Social and Responsible, with a focus on driving impact across key areas of operations.
The managing director explained that the company’s activities during the year were guided by nine strategic ambitions.
This, he noted, included achieving Net Zero emissions, promoting circularity, protecting water and nature, advancing diversity, and ensuring fairness and safety.
He added that other priority areas included enhancing community impact, providing consumers with choices, encouraging moderation, and addressing harmful use of alcohol.
Boidin said by integrating these priorities into its operations, Nigerian Breweries continued to protect the environment, empower communities, and promote responsible consumption.
He noted that the approach also aligned with the United Nations Sustainable Development Goals (SDGs), ensuring that the company’s growth remains inclusive, equitable and sustainable.
Also, Maria Karaseva, Finance Director, Nigerian Breweries, said that the company had significantly reduced its exposure to foreign exchange (forex) risks as part of measures to strengthen its financial position.
Karaseva said that the company currently had no forex liabilities in terms of borrowings or investment needs, noting that this marked a major shift from its position over the past three years.
She said that Nigerian Breweries no longer had forex liabilities in the form of borrowings or investment needs, which meant that it was much less exposed to forex pressures than before.
According to her, the company had intensified efforts to localise its supply chain, increasing reliance on local suppliers while reducing dependence on imports.
She said that the strategy had played a critical role in sustaining operations during challenging periods.
Karaseva, however, acknowledged that it was not feasible for the business to be completely insulated from forex exposure, but assured that measures were in place to minimise risks.
She said that the company was leveraging financial tools, including indirect hedging, to cushion the impact of external shocks and uncertainties.
She added that the company was working to manage its cash and deploy various financial instruments to minimise exposure to external shocks and uncertainties.
MARKET CAPITALISATION
Nigerian Breweries Plc says its market capitalisation grew by 135 per cent in 2025, rising from N991.5 billion in 2024 to N2.33 trillion.
Chairperson of the company, Mrs Juliet Anammah, disclosed this at its 80th pre-Annual General Meeting (AGM) news conference, as contained in the company’s 2025 Annual Report and Accounts.
Anammah attributed the performance to key economic reforms and policy shifts that strengthened Nigeria’s investment climate.
“Nigerian Breweries sustained strong momentum on the bourse, achieving a 135 per cent year-on-year growth in market capitalisation to close at N2.33 trillion.
“This reinforces our position as one of the most capitalised companies on the Nigerian Exchange,” she said.
She noted that the equities market recorded one of its strongest performances in nearly two decades, with a 51 per cent year-on-year gain and total market capitalisation of N99.4 trillion.
According to her, reforms such as the rebasing of Nigeria’s Gross Domestic Product (GDP) provided a more accurate reflection of economic activities, capturing emerging sectors including digital services, small-scale refining and the creative industry.
Anammah added that Nigeria’s removal from the Financial Action Task Force (FATF) grey list in 2025 boosted investor confidence and enhanced international credibility.
She said the signing into law of four tax reform bills also marked a major milestone in restructuring the country’s tax system, aimed at simplifying processes and broadening the tax base.
“These developments collectively drove positive sentiment in the capital market and supported our strong performance on the bourse,” she said.
On dividends, Anammah said the company did not recommend any payout for the 2025 financial year due to negative retained earnings.
According to her, accumulated losses must be fully offset before profit distribution can resume.
She, however, expressed optimism that the company would return to positive retained earnings in the near term and resume dividend payments.
Anammah also urged shareholders with outstanding dividend entitlements to claim them, noting that some dividends had remained unclaimed for over 12 years.
She advised affected shareholders to complete and submit e-dividend mandate forms to the company’s registrar for prompt payment.
On financial performance, she said group revenue rose by 35 per cent to N1.5 trillion, driven by effective pricing, strong performance of premium products and improved competitiveness.
She added that gross profit increased by 77 per cent to N565 billion, while operating profit grew by 194 per cent to N205 billion, supported by cost optimisation and supply chain efficiencies.
“Notably, we reversed the losses recorded in 2023 and 2024, posting a profit before tax of N161 billion and a net profit of N99 billion, compared with losses in the previous year.
“The turnaround was further supported by an 83 per cent reduction in net finance expenses, reflecting the benefits of the 2024 rights issue, which helped deleverage our balance sheet and settle outstanding foreign exchange obligations,” she said.
