The leadership of Nigerian Breweries Plc has tied the recent triple-digit surge in its share price to a successfully executed business recovery plan, asserting that the company has emerged from its most turbulent financial period with a fortified market position.
Speaking at the 80th Pre-Annual General Meeting media briefing in Lagos on Thursday, the Managing Director/CEO, Hans Essaadi, noted that the 135 per cent appreciation in the company’s stock value over the past year is a clear signal of renewed investor confidence in the brewer’s long-term fundamentals.
He said, “The recent stock rally solidifies NB Plc’s market dominance and serves as a validation of the difficult but necessary strategic decisions we took over the last 18 months.
“Despite the volatile environment that saw some players exit the country, we stayed, we reinvested, and today, we are navigating this crisis from a position of strength.”
The rally follows a landmark 2025 financial year where the Group made a significant rebound from the macroeconomic challenges of 2024. According to the Board’s financial commentary, Group revenue grew 35 per cent, supported by sustained innovation, premiumisation, right pricing, and strong commercial execution.
More impressively, the Group’s operating profit grew by over 190 per cent, reflecting rigorous cost discipline and supply chain efficiencies. This led to a 168 per cent rebound in net profit, swinging from a heavy net loss position a year earlier.
The capital injection from the 2024 Rights Issue proved pivotal, resulting in an 83 per cent reduction in net finance costs. Financial data presented showed that total borrowings plummeted from over N200bn in 2024 to approximately N59bn by the end of 2025, effectively eliminating the firm’s foreign currency exposures.
Highlighting this resilience, the Finance Director, Maria Karasewa, explained that the brewer has now achieved a “cash-positive” status.
“In the aircraft, you need to put your own mask on first before you attend to others. Our mask now works; we are financially strong today, which allows us to now focus entirely on our consumers and shareholders,” Karasewa remarked. “By clearing our dollar-denominated debts, we have removed the primary source of the distress we faced in 2024.”
In a move to diversify its earnings, the company confirmed the full acquisition and integration of Distell Wines and Spirits Nigeria Limited in 2025. Despite a one-off integration cost, the Board noted that the move expands the company’s “beyond beer” portfolio and bolsters long-term growth prospects.
Addressing the impact of the ongoing Middle East crisis, the CEO revealed that the company’s “scenario planning” for 2026 has already accounted for potential triggers, with a renewed focus on local sourcing.
“Nigeria for now is protected because we anticipated these macroeconomic shifts. We are moving beyond just ‘political’ support for local sourcing into a marathon roadmap that involves direct infrastructure and financing for smallholder farmers,” Essaadi added.
Despite the return to profitability, the Board clarified that the company’s retained earnings position remains in the negative due to the heavy losses suffered in the previous two years. The Company Secretary, Uaboi G. Agbebaku, said the Board expressed satisfaction that the journey to reversing this negative position is proceeding in line with expectations.
“Dividend payment is not based solely on whether you have made a profit in a single year. To be able to pay, we must clear our accumulated losses. However, the 135 per cent increase in share price value is the first step in that value-creation journey for our loyal shareholders,” the company noted.
Looking ahead, the Board reaffirmed its commitment to the Nigerian market, stating that its two “world-class” breweries currently on standby are ready to reopen as soon as volume growth hits targeted milestones. The company also warned regulators that proposed fiscal measures, such as tax stamps, must be handled with care to avoid wiping out the gains made by the manufacturing sector.
