Financial stakeholders and market analysts have expressed strong commendation for Nigerian Breweries Plc's first quarter 2025 financial performance, indicating the company's significant return to profitability and suggesting a promising future for both shareholders and the brewery industry at large.
The brewing giant recently released its Q1 2025 financial results, posting impressive figures across all key performance indicators. Total assets grew to N1.144 billion, compared to N1.138 billion for the same period in 2024, while revenue soared to N383.64 billion, resulting in a substantial gross profit of N166.57 billion.
Most notably, the company recorded a profit after tax of N44.55 billion, marking a remarkable turnaround from the N52.09 billion loss reported in the first quarter of 2024. Basic earnings per share also improved significantly to N1.43 kobo, up from a negative N5.07 kobo in the previous year.
Market Experts Respond Positively
Mike Eze, Managing Director of Crane Securities, praised the company's swift return to profitability and expressed optimism that these results would stimulate increased capital market activity.
"Nigerian Breweries is a top performer in the Nigerian Exchange and the misfortunes of the past two years affected the Nigerian capital market quite significantly," Eze stated. "People's confidence was shaken, and although the results were not impressive, I was one of the people that spoke at the time and I recall I expressed confidence that the company, given its track record, was going to bounce back and prove once again that it is a business worth investing for the long haul."
Chibueze Onah, CEO of Abuja-based investment analysis firm Francona Services, attributed the company's previous financial challenges primarily to external factors, particularly the volatile foreign exchange market that had destabilized many Nigerian businesses regardless of their size.
"The volatile nature of the forex market in Nigeria over the past two years destabilized a lot of businesses, irrespective of size and scale," Onah explained. "It was nearly impossible to plan and project, as everything from capital to inputs became subject to the shockwaves of conditions that were intractable. But with the increasing stability of the market, businesses are able to plan better and organize their resources in the directions of value returns."
Outlook for Continued Growth
Onah further commended Nigerian Breweries for its effective cost-containment measures, noting that with increased efficient utilization of capital and other resources, stakeholders can expect sustained enhancement in performance throughout the year.
Analysts believe the positive Q1 results will likely trigger greater interest in the company's stocks ahead of the full-year results expected in September, potentially leading to increased shareholder value if the current performance trajectory is maintained.
The brewing giant's return to profitability also signals broader stability and growth potential within Nigeria's brewery industry, which has faced significant challenges in recent years due to macroeconomic pressures.
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