After two consecutive years of losses triggered by foreign exchange devaluation and inflation-induced cost spikes, both Nigerian Breweries (NB) and International Breweries (INTBREW) have staged remarkable comebacks in 2025, turning heavy losses into solid profits.
Investors have already taken notice.
Nigerian Breweries’ share price has surged by 122%, rising from N32.00 to N71.00, while International Breweries has gained 161%, climbing from N5.55 to N14.50 year-to-date.
This sharp rally reflects a renewed wave of investor confidence in Nigeria’s brewery sector, driven by improved earnings, cost efficiency, and easing FX-related pressures.
The key question, however, is which of the two brewers performed better operationally, and which offers better value for investors going forward?
Revenue and market leadership
Nigerian Breweries maintained its dominance, with revenue hitting N1.041 trillion in the first nine months of 2025, up 48.24% YoY, almost matching its 2024 full-year figure of N1.084 trillion.
- This growth rate nearly doubles its five-year average of 26%, showing strong post-recovery momentum.
International Breweries also delivered a solid rebound with N472.57 billion in revenue, up 37.6% YoY, and already close to its 2024 full-year revenue of N488.96 billion.
- Its growth rate of 38% equally exceeds its five-year annual average of 29%.
Both brewers benefited probably from price adjustments and improving consumer demand, with NB maintaining clear market leadership by scale.
Verdict:
The 2025 revenue run-rate suggests that both companies are on track to beat their 2024 full-year records.
Profitability and margins
Both companies delivered strong turnarounds.
- Nigerian Breweries reported a pre-tax profit of N126.82 billion, reversing a loss of N203.12 billion in 2024.
- International Breweries posted a N74.21 billion pre-tax profit, also rebounding from a N154.55 billion loss.
At the bottom line, NB recorded N83.90 billion profit after tax, while INTBREW achieved N57.83 billion, highlighting a clear recovery from prior-year losses.
Although NB leads in absolute profit, International Breweries’ higher net profit margin of 12.2% compared to NB’s 8.1% reflects stronger cost efficiency.
Verdict:
Both brewers have firmly exited their loss cycles, but International Breweries’ higher profit margin signals better cost control, while Nigerian Breweries’ larger profit base reinforces its stability and earlier dividend comeback, making both attractive for different investor profiles.
Balance sheet and financial position
Both brewers recorded marginal declines in total assets during the period.
- Nigerian Breweries’ total assets dropped by 2.43% to N1.11 trillion as of September 2025.
- However, shareholders’ funds grew by 18% to N547 billion, improving its equity multiplier to 2.03 from 2.45 in 2024, indicating reduced leverage.
- Despite this, NB still carries negative retained earnings of N85.57 billion, though this marks a 49.6% improvement from N169.8 billion as of December 2024, showing clear progress toward full balance sheet recovery.
International Breweries’ total assets also declined slightly by 2% to N713 billion, while shareholders’ funds increased by 13% to N507 billion, lowering its equity multiplier to 1.41 from 1.62.
- It equally maintains negative retained earnings of N184 billion, an improvement of 24% from N242 billion in December 2024.
From a profitability standpoint, Nigerian Breweries’ larger profit base (N83.9 billion) and faster reduction in accumulated losses suggest it could fully clear its negative retained earnings by 2026 if current earnings momentum continues.
International Breweries, while improving steadily, may take until around 2027 to fully offset its retained losses, given its smaller annual profit size despite stronger margins.
Verdict:
Both brewers are steadily rebuilding their balance sheets, but Nigerian Breweries’ stronger profit capacity and faster retained earnings recovery put it ahead on the path to positive equity reserves, while International Breweries’ lower leverage and improving margins position it for longer-term stability once losses are cleared.
Investment verdict:
Both brewers have delivered impressive recoveries in 2025, turning around from deep losses to strong profits.
International Breweries shows faster earnings momentum and stronger margins, suggesting efficient cost control and improving investor sentiment.
- The stock is still trading 17% below its 52-week high, offering short-term upside potential. With its share price up 161% year-to-date and profit margins leading the industry.
- INTBREW appears better positioned for short-term gains. However, its negative retained earnings remain a key risk to long-term dividend prospects.
Nigerian Breweries, on the other hand, delivers larger absolute profits and stronger balance-sheet stability.
- Although the stock has dipped 6% in the past month, it trades only 8% below its 52-week high, indicating limited near-term upside but strong price stability.
- Its size, market dominance, and dividend potential make it a Hold for value-focused investors awaiting sustained recovery in retained earnings.
- Its size, market dominance, and likely dividend comeback make it a Hold for value-focused investors awaiting sustained recovery in retained earnings.
