Nigerian Breweries Overcomes FX Burden, Targets Sustained Profitability
Following the elimination of foreign exchange (FX) exposure that had negatively impacted its performance in recent years, Nigerian Breweries has outlined a strategic shift to sustain its 2025 turnaround. At the 80th pre-yearly general meeting press briefing held in Lagos, the managing director, Thibaut Boidin, announced that the company currently has no FX liabilities arising from borrowings or investment losses, marking a clear departure from the pressures experienced over the past three years.
Strategic Measures for Stability
According to Boidin, the firm has strengthened its local supply chain by increasing engagement with domestic suppliers, while also deploying a broader range of financial hedging tools to cushion the business against currency and external market shocks. This move is part of a broader effort to adapt to ongoing macroeconomic volatility, which may persist due to the nation's security challenges and the crisis in the Middle East. The company has implemented scenario planning and more disciplined resource allocation to navigate these uncertainties effectively.
Financial Turnaround and Performance
Recall that the firm achieved a Group profit before tax (PBT) of N161 billion and a net profit of N99 billion in 2025, a significant improvement from a loss before tax of N183 billion and a net loss of N145 billion respectively in 2024. Boidin attributed this turnaround to an 83 per cent reduction in net finance expenses, reflecting the benefits of the 2024 rights issue, which helped the company deleverage its balance sheet and settle overdue foreign exchange payables. He proudly noted that the company successfully reversed its negative cash position from prior years, ending 2025 with a positive free operating cash flow, underscoring improved cost management during the period under review.
Challenges and Future Outlook
Despite the progress, Boidin expressed concern over declining consumer purchasing power, driven by persistent inflation, which has constrained spending and contributed to a contraction in the beer market in recent years. However, he assured shareholders that the company is engaging stakeholders, including the Manufacturers Association of Nigeria and other industry groups, to shape fiscal policies affecting the sector. On product pricing, he emphasized that the company remains very conscious of its consumers and will ensure it takes the right pricing decisions, balancing affordability with sustainability and overall market realities.
Resilience and Commitment
Also speaking at the event, the Corporate Affairs Director of Nigerian Breweries, Uzodinma Odenigbo, highlighted that the past few years had been tough and uncomfortable for the business, but added that it also brought out the resilience embedded within the organisation. He pointed out that despite the difficult operating conditions, the company's strong performance reflected a clear sense of focus, discipline, and commitment to execution across its operations. According to him, the results achieved during the period are an indication that sustainable growth is still possible even in a highly challenging environment, provided the right strategies, cost discipline, and operational efficiency are consistently applied.
