Nigerian Breweries Q1:2025 Earnings Note | Back on the Profitability Path
Just as we expected, Nigerian Breweries bounced back to profitability in Q1:2025. After the last two years of losses, the company swung back to profit in Q1:2025, thanks to strong sales, aggressive advertising, smarter cost controls, and less FX pain.Additionally, the company is not just brewing beer anymore. With full ownership of Distell Nigeria now in the bag, NB looks set to deepen its footprint beyond its traditional base and expand into wines, spirits and flavored alcoholic beverages.
We are placing a STRONG BUY rating on the stock, with a 12-month target price of NGN55.36. At NGN42.90 (as of April 29th, 2025), that’s a 29.04% upside, and a compelling entry point for investors looking to play in the Consumer Goods sector.
ARM Securities Limited is a full-service brokerage house that offers best-in-class brokerage services to local as well as foreign private and institutional investors. Formerly known as Hamilton Hammer, the Company commenced operation in 1994 and was acquired by ARM Investment Managers in 2008--an acquisition which has successfully re-positioned the company as a recognized brokerage firm in Nigeria. The Company is a dealing member of the Nigerian Stock Exchange (NSE) and is regulated by Securities and Exchange Commission (SEC). ARM Securities research team provides insightful commentaries on the Nigerian economy and its equity and debt markets using an approach which incorporates a thorough understanding of the fundamentals of the industries and companies under coverage. The research therefore adopts an integrated methodology of top-down analysis and bottom-up stock selection, which focuses on publicly quoted companies on the Nigerian Stock Exchange that are judged to offer the highest potential for earnings growth. In addition, its analysts provide periodic commentaries on a range of topical global and local issues which provide investing clients with a holistic view of the opportunities and risks in today’s financial market landscape.
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