Nigerian Breweries Plc, Nigeria’s most valuable brewer, recorded a ₦85.5 billion profit in the first nine months of 2025, according to its filing on the Nigerian Exchange on Wednesday, despite posting a ₦2.9 billion loss in the third quarter alone.

The company attributed the Q3 loss to a one-off impairment charge of ₦6.08 billion, which was occasioned by post-acquisition fair value adjustments linked to the full integration of Distell Wines and Spirits Nigeria Limited into the group’s operations.

The nine-month profitability, which was supported by a strong operating profit and a lower net finance cost, stands in stark contrast to the ₦149.5 billion losses the beer maker incurred in the prior period last year, highlighting a positive shift as the Lagos-based brewer navigates sky-high inflation and exchange rate volatility that previously dealt a blow to earnings.

The improved earning position for the period under review was partly supported by resilient pricing and gradual volume recovery, which saw its turnover surge to a record of ₦1 trillion.

Consequently, Gross profit rose 97.8 percent to ₦415.15 billion, up from ₦209.9 billion in the corresponding period last year.

Despite cooling inflation that slowed for the sixth straight month to 18.02 per cent in September 2025, the cost of sales rose 26 percent to ₦631.23 billion, underscoring the enduring impact of higher input costs and logistic expenses in conveying products.

Operating expenses rose by 56.7 percent to ₦93.98 billion, primarily driven by a 120.2 percent increase in administrative expenses—largely linked to one-off restructuring and integration costs from Distell—and a 37.4 per cent rise in selling & distribution expenses, which reflected the company’s sustained market support activities.

Despite the sharp rise in OPEX, EBIT and EBITDA margins improved to 3.6 percent and 9.5 percent, respectively, supported by operational efficiency, better cost absorption, and disciplined pricing actions.

A key factor cushioning the financial impact was the net finance charges, which fell by 81.9 percent to ₦14.00 billion. This reflected a 61.6 percent reduction in debt costs and a net FX gain of ₦2.94 billion, an immense turnaround compared to the FX loss of ₦48.21 billion recorded in the third quarter of 2024, which helped absorb the one-off impairment charge of ₦6.08 billion in the current period.

The brewer celebrated its overall performance in a statement on the NGX, saying: “The Group delivered a strong top-line growth in the nine months under review despite the high double-digit inflation rate that continues to constrain consumer spend, and the high input costs. The Rights Issue programme of 2024 has contributed in no small measure to the positive turnaround in the profitability of the Group compared to a year ago.”

Despite the quarterly setback, the company’s “Board expects a rebound in the fourth quarter, driven by festive demand, a continued focus on revenue management, and operational excellence. The outlook for the full year 2025 performance remains positive.”