Nigerian Breweries, the local unit of Dutch brewing giant Heineken, reported a 25.6 percent rise in first-quarter profit on Thursday, driven by stronger revenue growth and sharply lower finance costs, as the company continues its recovery from two years of losses.
The brewer posted a post-tax profit of 55.9 billion naira (US$35 million), up from 44.6 billion naira in the same period last year, according to its financial statement. Revenue rose 7.7 percent to 413 billion naira, supported by stronger sales across its portfolio of beer and malt drinks.
The performance extends a recovery trend that began in 2025, following a difficult period in 2023 and 2024 when the company was hit by foreign exchange volatility, high input costs and weak consumer spending.
Operating momentum was led by flagship brands, including Heineken lager, which recently introduced a 45-centilitre bottle to strengthen its position in the mid-range premium segment. The company also highlighted strong performance from its stout category, particularly Legend, which has expanded its consumer base in recent months.
Legend “has recorded historic success in recruiting more consumers,” chief executive Thibaut Boidin said at a pre-annual general meeting briefing in Lagos last week, adding that the brand is now “at parity with the number one brand in stout.”
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Cost pressures, however, remain elevated across the industry, with inflation and energy prices continuing to weigh on margins. Despite this, Nigerian Breweries reported a significant easing in financial strain during the quarter.
Finance costs fell 46.1 percent to 8.3 billion naira, while finance income surged more than fivefold to 1.3 billion naira. The company also recorded no foreign exchange losses in the period, compared with a loss of 178 million naira a year earlier.
The improvement reflects a major balance sheet restructuring, with the brewer now fully deleveraged in foreign currency terms after settling FX-denominated obligations using proceeds from a 2024 rights issue.
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Profit before tax rose to 80.4 billion naira, compared with 70 billion naira in the same period last year, while total assets increased 6.7 percent to 1.1 trillion naira.
Despite the strong quarterly performance, the company warned of external risks linked to global geopolitical tensions. Parent company Heineken has flagged potential demand pressures this year, citing uncertainty around energy prices and inflation linked to the ongoing Middle East conflict.
“In view of the Middle East crisis, the company has intensified focus on risk management by reviewing downside scenarios and implementing mitigations across key exposures to protect performance and preserve financial flexibility,” Nigerian Breweries said.
The brewer also confirmed that dividend payments remain suspended due to regulatory constraints under Nigeria’s Companies and Allied Matters Act 2020, which prohibits cash payouts when retained earnings are negative.
Nigerian Breweries’ retained earnings currently stand at minus 16.2 billion naira, reflecting accumulated losses from previous years despite the recent recovery in profitability.
Beyond beer production, the company operates an integrated packaging business producing bottles, cans, crown corks, labels, cartons and plastic crates, a vertical structure that management says helps stabilise supply chains and reduce import dependence in a volatile currency environment.
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Analysts say the company’s improved financial position marks one of the clearest signs yet that Nigeria’s consumer goods sector is stabilising after prolonged macroeconomic shocks, though they caution that sustained recovery will depend on inflation control, currency stability and consumer purchasing power in Africa’s most populous economy.
