International Breweries, Nigeria’s second-largest beer producer, has reported a net profit of about US$34 million (N50.9 billion) for the 2025 financial year, marking its first annual profit since 2017 and ending a prolonged Brewperiod of losses.
The result represents a sharp turnaround from a net loss of roughly US$76 million (N113.6 billion) in the previous year, according to its audited financial statement released on Friday.
The company, owned by Belgian multinational AB InBev, produces brands including Budweiser, Trophy, Hero and Castle Lite. It is one of the major players in Nigeria’s beer industry alongside Nigerian Breweries.
Following the announcement, International Breweries’ shares rose by 9.9 percent to N13.35 on the Lagos market, marking its strongest single-day gain since the beginning of the year as investors reacted positively to the return to profitability.
The company’s rebound comes after seven years of sustained losses, driven by heavy debt servicing costs, foreign exchange pressures and restructuring expenses linked to its merger of multiple brewing entities in Nigeria.
In 2016, AB InBev completed the acquisition of SABMiller’s stake in the company, consolidating its position in Nigeria’s fast-growing beer market. It later merged International Breweries with Intafact Beverages and Pabod Breweries in a bid to create operational efficiencies and scale.
However, the integration coincided with significant financial strain. The company began recording losses in 2018 as financing costs surged and revenue growth lagged behind expectations. Construction of the Sagamu-based Gateway brewery, a greenfield investment estimated at about US$250 million, further increased debt and interest expenses.
Between 2019 and 2024, International Breweries was hit by rising operating costs, currency volatility and foreign exchange losses, which peaked at more than N165 billion in 2024 amid a dollar shortage and sweeping currency reforms in Nigeria.
The company said the turnaround in 2025 was driven by a significant improvement in revenue, which rose to about N619 billion, alongside a sharp reduction in foreign exchange losses to N13.7 billion from N165.7 billion the previous year.
The improved macroeconomic environment and cost management measures helped restore profitability after years of balance-sheet pressure.
Despite the recovery, the company remains highly leveraged and structurally constrained by its ownership profile. AB InBev increased its stake to more than 96 percent through successive rights issues aimed at reducing debt and strengthening the balance sheet.
The dominant ownership position has left only about 4 percent of shares in free float, a level that falls below listing requirements on the Nigerian Exchange, which typically requires at least 20 percent free float or a minimum market value threshold.
Market analysts say the limited availability of shares has contributed to volatility and price spikes, as scarcity in tradable stock amplifies investor reactions to earnings news.
The Nigerian Exchange had previously granted the company extensions to address its free float shortfall, according to regulatory disclosures.
The strong earnings performance also lifted investor sentiment across Nigeria’s consumer goods sector, which has faced pressure from inflation, foreign exchange constraints and weak consumer purchasing power in recent years.
Analysts say the company’s ability to sustain profitability will depend on continued stability in currency markets, cost discipline and steady demand growth in Nigeria’s competitive beer market.
For now, the return to profit marks a significant milestone for International Breweries, signaling a potential turning point after years of restructuring, losses and financial strain.
