International Breweries Plc has reported its first profit in seven years in 2025, helped by a sharp rise in sales and a largely stable naira, according to the company’s audited financial results filed with the Nigerian Exchange on Friday.
The AB InBev-controlled company reported a net profit of N51 billion for the year ended December 2025, compared with a loss of N113.6 billion in 2024. The turnaround comes as relative stability in the naira reduced the scale of foreign exchange losses that had repeatedly wiped out operating gains.
Revenue from sales climbed 21 percent to N619 billion, supported by price increases, improved volumes, and a more predictable operating environment. Gross profit rose to N210 billion from N131.35 billion a year earlier, reflecting stronger sales despite elevated input costs.
The sharper shift, however, came below the operating line. In 2024, steep currency devaluations that saw the naira shed about 41 percent of its value and hedge revaluations produced over N166 billion in FX-related losses, pushing the brewer deeper into the red.
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But with the naira posting a 7.5 percent gain last year for the first time in more than a decade, net FX losses narrowed sharply to about N14 billion, helped by lower realised FX losses and unrealised FX gains of N8.4 billion, compared with heavy unrealised losses in the prior year.
That improvement helped lift profit before tax to N89 billion from a loss of N111.8 billion in 2024, even though costs remained a constraint. Cost of sales increased to N409.4 billion, driven by raw materials, energy, and logistics expenses. Administrative, marketing, and distribution costs also rose to over N124 billion, reflecting inflationary pressures across the supply chain.
Finance income provided additional support. Net finance income stood at N6 billion, compared with a net finance cost of N20.7 billion a year earlier, as interest expenses fell and borrowing was eliminated.
The company ended the year with no outstanding loans or overdrafts, avoiding high interest rates that had previously amplified losses.
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Cash generation slowed despite a rise in earnings. Net cash generated from operations dropped to N139.3 billion, down from N148.9 billion in the prior year, while cash and cash equivalents rose significantly to N155.4 billion, up from N109.2 billion in 2024.
The stronger performance also reduced accumulated losses, hence the reason for no declaration of dividends. Retained losses narrowed to N191.03 billion, from N241.9 billion a year earlier, lifting total equity to N499.8 billion.
Still, the recovery remains closely tied to macroeconomic conditions, even though that’s now being strained by the Middle East war. Input costs remain high, consumer spending is under pressure, and earnings remain sensitive to currency movements in an import-dependent brewing industry.
Investors are repricing the stock as International Breweries gained nearly 7 percent on Friday, a boost for a stock that has shed more than 13 percent of its value since the beginning of the year, ranking it 126th on the NGX in terms of year-to-date performance.