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Inside Nigerian Breweries Turnaround: How Slashing Borrowing Costs Ended Two-Year Losing Streak

February 13, 2026
by
Financial Expert Says Stable Forex Regime Will trigger Nigerian Breweries, Others’ Return To Profitability In 2024

After two years losing streak, Nigerian Breweries is back to profitability, reversing the heavy losses recorded in 2023 and 2024, which were the periods the company’s shareholders were not rewarded for their investments.

In 2025, Nigerian Breweries generated N1.46 trillion compared to the N1.08 trillion turnover recorded by the brewer in 2024, representing a 35 percent growth.

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In the company’s annual report and accounts for the year ended December 31, 2025, Prime Business Africa learnt that Nigerian Breweries spent N902.23 billion on production costs, which surpassed the N764.52 billion incurred in 2024.

With revenue growth exceeding that of production cost, which was by 18.01 percent, Nigerian Breweries recorded a 76.66 percent increase in gross profit, as it climbed up from N319.91 billion posted in 2024 to N565.18 billion last year.

Other income of Nigerian Breweries grew slowly by 3.22 percent to N4,15 billion between January and December 2025, compared to the N4.02 billion recorded in the year before.

Also, analysis showed that selling and distribution expenses increased by 37.24 percent year-on-year, from N203.23 billion to N278.92 billion, while administrative expenses grew by 77.20 percent, from N46.75 billion to N82.85 billion.

However, expected credit loss on financial assets decreased to N2,35 billion in 2025, from N4,05 billion in 2024, reflecting a decline of 41.78 percent.

Prime Business Africa analysis showed that this contributed to the 194 percent growth recorded by Nigerian Breweries in its operating profit, which increased from N69.89 billion in 2024 to N205.19 billion the year after.

While the company’s move to reverse its bottom-line loss took a hit after finance income plunged by 58.08 percent year-on-year, from N4.24 billion to N1.77 billion, an 82.13 percent decline in its finance cost, which dropped from N257.05 billion to N45.91 billion, improved the brewer’s net earnings.

Despite interest on bank deposits declining (finance income), the decrease in the company’s interest paid on borrowings (finance costs) reduced net finance costs by 82.54 percent, from N252.81 billion in 2024 to N44.13 billion in 2025.

This helped Nigerian Breweries to reverse the N183.03 billion pre-tax loss recorded in 2024 with a N161.06 billion profit before tax (PBT) last year.

Following its return to profitability, the brewer incurred N61.96 billion in income taxes during the period under review, compared to the N38.03 billion tax credit reported in 2024.

This led to Nigerian Breweries closing last year with N99.1 billion profit after tax (PAT), the first in three years, compared to the N144.99 billion post-tax loss recorded in 2024.

With the return to profitability, the company begins its journey to sustained positive retained earnings, as the brewer closed 2025 with a negative retained earnings position of N72.16 billion, down from the N168.79 billion recorded in 2024, which has made Nigerian Breweries unable to pay dividends to shareholders.

Once the company achieves sustained positive retained earnings, it is projected to resume dividend payments.

For press releases, tip-offs, and corporate information, call 08149575257 (hotline), email: editor@primebusiness.africa and publisher@primebusiness.africa

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