International Breweries Returns to Profit with N51bn Gain After Seven Years of Losses

Strong revenue growth and reduced forex losses drive turnaround for Nigeria’s second-largest brewer

📚 Get "Spend Less, Save More" — Click here

By Adebisi Babalola | Lagos, Nigeria

International Breweries Plc has reported a post-tax profit of N50.9 billion for the 2025 financial year, marking its first annual profit since 2017 after seven consecutive years of losses.

The turnaround signals a major recovery for the brewer and its majority shareholder, Anheuser-Busch InBev (AB InBev).

According to its audited financial report released on Friday, the company rebounded from a net loss of N113.6 billion recorded in 2024, underscoring a significant improvement in operational and financial performance.

The brewer, known for brands such as Budweiser, Trophy, Hero, and Castle Lite, now boasts total assets valued at N739.7 billion, ranking it among Nigeria’s top beer manufacturers alongside Nigerian Breweries Plc.

Following the announcement, the company’s share price surged by 9.9 per cent to N13.35 on the Nigerian Exchange, marking its strongest single-day gain so far this year.

Revenue Growth, FX Loss Reduction Drive Recovery
The return to profitability was largely driven by a sharp increase in revenue, which rose to N619 billion, as well as a substantial reduction in foreign exchange losses.

Net FX losses dropped significantly to N13.7 billion in 2025 from N165.7 billion in the previous year, reflecting improved currency management and easing pressure from exchange rate volatility.

Analysts note that foreign exchange exposure had been a major drag on the company’s earnings in recent years, particularly amid Nigeria’s currency reforms and dollar shortages.

Years of Financial Struggles
International Breweries’ financial difficulties date back to 2018, following AB InBev’s acquisition and consolidation of SABMiller’s stake, alongside the merger with Intafact Beverages Limited and Pabod Breweries.

The expansion strategy, aimed at capturing a larger share of Africa’s beer market, significantly increased the company’s debt profile and financing costs.

📚 Get "Spend Less, Save More" — Click here

Heavy capital investments, including the $250 million Gateway Brewery in Sagamu, further strained its balance sheet, while rising operating costs and sluggish revenue growth deepened losses between 2019 and 2020.

By 2024, losses had peaked at over N113 billion, driven largely by foreign exchange shocks and macroeconomic headwinds.

Debt Reduction and Ownership Structure
To stabilise its finances, AB InBev undertook multiple rights issues, including a N164.4 billion capital raise in 2020 aimed at reducing debt linked to expansion projects.

A subsequent rights issue in 2024 enabled the company to repay a $379.9 million loan from Citibank, significantly improving its debt position.

However, these moves also increased AB InBev’s ownership stake in International Breweries to approximately 96 per cent, leaving only a small fraction of shares available for public trading.

Free Float Concerns on NGX
The limited availability of shares has raised concerns about compliance with the listing requirements of the Nigerian Exchange Group (NGX), which mandates a minimum free float of 20 per cent or shares valued at N40 billion.

With only about 4 per cent of its shares currently in public hands, analysts warn that the scarcity could distort price movements and reduce market liquidity.

The company disclosed in January 2025 that the NGX had granted it an extension to address the free float requirement.

International Breweries’ return to profitability marks a critical milestone after years of financial strain, but challenges remain around market structure and regulatory compliance.

Market observers say sustained earnings growth, improved cost management, and resolution of free float issues will be key to maintaining investor confidence going forward.