Players in the Nigerian financial services sector have commended the financial performance of Nigerian Breweries Plc in the first quarter 2025, suggesting it not only points to a return to the days of rewarding shareholder vale but also points to stability and growth in the brewery industry.

Nigerian Breweries, it will be recalled, released their first quarter financial result for 2025, in which it posted excellent result across all vital indicators. Total Assets grew to N1.144 billion in 2025, compared to N1.138 billion for the same period in 2024. Revenue also soared to ?383.64 billion, resulting in a gross profit of ?166.57 billion.

Along the same line, profit after tax for the period was ?44.55 billion, a significant improvement compared to a loss of ?52.09 billion in for first quarter 2024, while basic earnings per share stood at N1.43 kobo, up from a drop of N5.07 kobo for the same period in the previous year.

Commenting on the result, the Managing Director of Crane Securities, Mike Eze, commended the quick return to profitability of the company and was optimistic the results will spur increased capital market activity.

Eze believes the performance will trigger greater interest in the stocks of the company ahead of the full year result coming in September, and urged the management to sustain the performance for increased shareholder value.

?Nigerian Breweries is a top performer in the Nigerian Exchange and the misfortunes of the past two years affected the Nigerian capital market quite significantly. People?s confidence was shaken, and although the results were not impressive, I was one of the people that spoke at the time and I recall I expressed confidence that the company, given its track record, was going to bounce back and prove once again that it is a business worth investing for the long haul,? the stockbroker stated.

Also commenting on the result, CEO of Francona Services, an Abuja-based investment analyst, Chibueze Onah, commended Nigerian Breweries for navigating the headwinds of forex-induced challenged that plunged it into poor results, and for steering the brand back to profitability.

Onah, who attributed the past negative financial results by the company to mostly external factors, said with the relative stability in the foreign exchange market, companies like Nigerian Breweries whose businesses are directly affected by exchange rate volatility, will experience significant performance uplifts.

?The volat6ile nature of the forex market in Nigeria over the past two years destabilized a lot of businesses, irrespective of size and scale. It was nearly impossible to plan and project, as everything from capital to inputs became subject to the shockwaves of conditions that were intractable. But with the increasing stability of the market, businesses are able to plan better and organize their resources in the directions of value returns. It is therefore gladdening to see Nigeria?s giant brewer posting positive numbers and investors are more certain of sustained results going towards the end of the year,? he stated.

He also commended the company for its cost-containment measures, saying that with increased efficient utilization of capital and other resources, stakeholders will experience a sustained enhancement in performance.

Condensed Statement of Comprehensive Income:

For Q1 2025, Nigerian Breweries Plc reported net revenue of Condensed Statement of Cash Flows:

Net cash generated from operating activities during Q1 2025 was negative N66.14 billion, compared to negative N67.65 billion in Q1 2024. Cash used in investing activities amounted to N10.29 billion, while financing activities generated positive net cash flow of N16.83 billion.

Condensed Statement of Changes in Equity:

The primary driver of the increase in equity during Q1 2025 was the profit for the period of N44.55 billion. Transactions with owners, including share-based payments, also contributed N202.17 million. Dividends paid during the period amounted to N1.08 billion.

Selected Explanatory Notes:

The interim financial statements are prepared in accordance with IFRS IAS 34. The company has related party transactions with Heineken N.V. and its group entities, conducted on terms comparable to transactions with third parties.

Management Commentary and Strategic Outlook: (No specific management commentary or strategic outlook is provided in the sample document.)

Risks and Challenges:

The company?s performance is subject to seasonal fluctuations due to weather and festivities.

This summary is intended for informational purposes only and has been generated using AI. It is not financial advice. Investors should refer to the full interim financial statement document for detailed information. Please be advised that this AI-generated summary may contain errors.

Indicative Share Trading Liquidity

The total indicative share trading liquidity for Nigerian Breweries Plc (NB.ng) in the past 12 months, as of 3rd April 2025, is US$29.5M (NGN43.96B). An average of US$2.46M (NGN3.66B) per month.

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