International Breweries posts record N88.9bn pre-tax profit

International Breweries has announced a record N88.9bn pre-tax profit in 2025, marking a definitive turning point for the beverage giant as it officially transitioned from a loss to a position of significant profitability.

According to the audited financial statements released on the Nigerian Exchange, the company delivered a pre-tax profit of N88.95bn, a figure that marginally surpassed the earlier unaudited estimate of N85.1bn.

This performance represents a dramatic recovery from the N111.8bn loss reported in the prior year, a shift driven by aggressive revenue growth and a sharp decline in foreign exchange volatility.

“The result marks a strong turnaround from a loss of N111.8bn in the prior year, driven largely by stronger revenue performance and reduced foreign exchange losses,” the report noted, highlighting the stabilisation of the macroeconomic environment for the brewer.

Total revenue for the period surged to N619.04bn, representing a 26.6 per cent year-on-year increase from the N488.9bn recorded in 2024. This top-line growth was fuelled entirely by the Nigerian market, where “100 per cent of sales were driven by its brewed products”, with distributors accounting for 99 per cent of the total volume.

Despite the rising cost of sales, which reached N409.4bn due to higher production overheads and material costs, the company’s gross profit soared by nearly 60 per cent to settle at N209.6bn.

The bottom-line health of the firm was further bolstered by the fact that “other losses dropped sharply to N2.8bn from N136.1bn due to reduced FX pressures”, allowing the operating profit to swing back to N82.8bn from a previous loss.

Shareholders saw a corresponding recovery in value as earnings per share moved to N0.30, a stark contrast to the N1.16 loss per share recorded just twelve months prior. On the balance sheet, total liabilities declined to N239.9bn, while total equity strengthened to N499.8bn.

However, despite the post-tax profit of N50.9bn, the company confirmed that “retained losses on the balance sheet narrowed to N191.03bn from N241.9bn; hence, no dividend was declared” for the financial year.

This cautious approach to capital distribution suggests that while the recovery is robust, the board remains focused on fully clearing historical deficits and fortifying the company’s long-term financial position before resuming payouts to investors.