Off-Season Impacts Nigerian Breweries’ Q3:2025 Earnings Results
Key TakeawaysSeasonal Slowdown Impacts Topline: NB’s Q3:2025 revenue declined 13.05% QoQ to NGN308.24bn, reflecting the typical Q3 moderation in beer consumption. However, YoY revenue rose 33.38%, driven by higher prices and an improved product mix.
Negative EPS in Q3:2025: NB posted a loss of NGN2.91bn in Q3:2025, translating to a negative EPS of NGN0.13, compared to a profit of NGN42.81bn (EPS: NGN1.38) in Q2:2025. Nevertheless, 9M:2025 performance remained strong, with profit up 157.20% YoY to NGN85.51bn (vs. a NGN149.50bn loss in 9M:2024).
Net Finance Costs Remain Elevated QoQ:, Net finance cost rose 155.00% QoQ from NGN5.49bn, reflecting lower FX gains and impairment losses. However, it moderated 81.95% YoY to NGN14.00bn, following a NGN2.94bn FX gain and higher finance income.
Balance Sheet Gradually Stabilizing: NB’s balance sheet showed early signs of stabilization in 9M:2025, with equity expanding by 17.98% YTD to NGN546.58bn, driven primarily by improved earnings and lower accumulated losses
Cash Flow Tight but Improving: Cash and cash equivalents declined by 54.3% YTD to NGN69.25bn in 9M:2025, underscoring continued liquidity strain despite a rebound in earnings.
Valuation: We reiterate our BUY rating on Nigerian Breweries Plc, while revising our target price to NGN87.72 (previously NGN93.12), representing a 25.31% upside from the closing price of NGN70.00 (as of October 23, 2025).
For a comprehensive review of Nigerian Breweries’ Q3/9M:2025 performance, including our outlook and key risk considerations, please click the link below.
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