NB warns continued instability could lead to FX risk, higher inflation
Nigerian Breweries Warns of Economic Risks Amid Global Instability
Nigeria’s economic landscape could face significant challenges, according to Nigerian Breweries Plc (NB), which has raised concerns over potential foreign exchange risks and rising inflation.
At a pre-Annual General Meeting held in Lagos, Managing Director and CEO Thibaut Boidin outlined the company’s performance for the financial year 2025, which he noted had previously projected a period of macroeconomic stability and growth in Nigeria. “However, recent developments in the Middle East, including a surge in crude oil prices above $100 per barrel, have disrupted this outlook,” Boidin said. He cautioned that ongoing instability could lead to supply chain issues and increased inflation.
Despite these challenges, Boidin emphasized the vast potential within Nigeria, urging the government to implement policies that would facilitate financing for farmers and encourage import substitution.
In discussing the company’s financial performance, Finance Director Maria Karaseva reported a significant rebound in 2025. Group revenue increased by 35%, reaching N1.5 trillion. The gross profit surged by 77% to N566 billion, while operating profit grew by 194% to N205 billion, driven by strategic cost initiatives and improvements in supply chain efficiency. The company successfully reversed the net losses recorded in 2023 and 2024, ending the year with a profit before tax of N161 billion and a net profit of N99 billion, a stark contrast to the losses of N183 billion and N145 billion, respectively, in the previous year.
Karaseva attributed the improved profitability to an 83% reduction in net finance expenses, largely resulting from the benefits of the 2024 Rights Issue, which allowed the company to reduce its debt and settle overdue foreign exchange obligations.
Company Secretary Uaboi Agbebaku addressed shareholder prospects, stating that the company has prioritized its dividend policy in recent years. “Our shareholders have reaped the benefits from our dividend payments, the Rights Issue, and the appreciation of share prices,” Agbebaku said. He expressed optimism about the company’s future, indicating confidence that a favorable operating environment could lead to a positive turnaround in retained earnings, ultimately allowing for the resumption of dividend payments.
The full report on the financial results and future projections will be presented at the upcoming Annual General Meeting.
