Amid Uncertainty, Nigerian Breweries Foresees Strong Growth in 2026
Kayode Tokede
The management of Nigerian Breweries plc, yesterday expressed optimism about its performance in 2026 financial year, projecting stronger growth driven by expectations of improved macroeconomic stability.
The Managing Director and chief executive officer, Thibault Boidin, disclosed this during the company’s pre-80th annual general meeting media briefing in Lagos.
According to him, the multinational company is building on its return to profitability in 2025 and anticipates improved sales volumes in the year ahead.
He cautioned, however, that recent geopolitical tensions in the middle east have disrupted earlier projections. According to him, the situation has pushed crude oil prices above $100 per barrel in the first quarter, triggering higher petrol and diesel costs in Nigeria.
He explained that while initial indicators suggested 2026 would usher in a period of economic stability and growth following key government reforms, the operating environment remains challenging.
He pointed to persistent inflation, high borrowing costs driven by tight monetary policy, exchange rate volatility, and weakened consumer purchasing power as major concerns.
The 2025 results presented at the briefing marked a sharp recovery from the difficult years that preceded them. Group revenue grew 35 per cent to a historic record of N1.46 trillion, up from N1.08 trillion in 2024. Operating profit nearly tripled, rising 194 per cent to N205.2 billion from N69.9 billion reversing a net loss of N145 billion in 2024.
Cash flow also swung from deeply negative to positive, while total borrowings were drastically reduced from over N200 billion at the end of 2024 to N59 billion following the rights issue.
Speaking also, Finance Director, Nigerian Breweries, Maria Karaseva, who delivered the detailed financial overview, described the performance as a financially successful year achieved through disciplined cost control, premiumisation, and a more stable naira. “strong cost controls helped us to improve gross profit by 77 per cent and operating profit a massive 194 per cent. Net profit returned to positivity,” she said, noting that variable and fixed costs grew slower than revenue.
She added that forex-denominated debt had been reduced to zero, eliminating major foreign-exchange losses that had plagued previous years.
Karaseva also explained why no dividend would be paid for 2025 despite the strong profit.
According to her, accumulated retained earnings remain negative after the heavy losses of 2023 and 2024. “As long as your retained earnings are negative, the law does not allow you to pay dividends,” she clarified.
The company also completed the full integration of the acquired Distell Wines and Spirits Portfolio, opening new categories beyond beer. While the immediate contribution to 2025 revenue and profit was modest, the company revealed that the acquisition positions Nigerian Breweries for long-term diversification.
