NB warns continued instability could lead to FX risk, higher inflation

…Rebounds to profitability  

By Peter Egwuatu

Nigerian Breweries, NB Plc, has warned that the continued global instability could lead to Foreign Exchange, FX, risks, supply issues and higher inflation in Nigeria.

Speaking to newsmen on the performance of the company for the financial year 2025, at its pre-Annual General Meeting, AGM, in Lagos, Managing Director/Chief Executive Officer, NB Plc, Mr Thibaut Boidin, said: “The initial indicators were that 2026 would be a year of macroeconomic stability and growth following the prior year reforms of the government. “However, recent events in the Middle East have disrupted this outlook, pushing crude oil prices above $100 in the first quarter leading to higher petrol and diesel prices. The continued instability could lead to FX risks, supply issues and higher inflation.”

He, however, stated that Nigeria has huge potentials that could be explored, while calling on the government to make policy that will unlock financing for the farmers as well as promote import substitution.

He noted that NB performed well in 2025 following the company’s continued investment in employees and product development.

Also commenting,   Mrs Maria Karaseva , Finance Director, said : “ 2025 marked a rebound in our financial performance as our group revenue rose 35% to N1.5 trillion supported by appropriate pricing. Our gross profit also surged by 77% to N566 billion; operating profit grew by 194% to N205   billion supported by cost initiatives and supply chain efficiencies. We ended the year by reversing the net losses recorded in 2023and 2024. The Group profit before tax recorded N161 billion and a  net profit of N99 billion compared to the loss before tax of N183 billion and net loss of N145 billion respectively in 2024.”

She further explained that the turnaround in profitability was supported in no small measure by an 83% reduction in net finance expenses reflecting the benefits of the 2024 Rights Issue which helped the company to deleverage its balance sheet as well as pay off overdue FX payables.

While commenting on the prospects of shareholders, Uaboi Agbebaku, Company Secretary, said: “Our shareholders have been benefitting from our dividend payments for the past years. We are very deliberate about our dividend policy. Our shareholders have benefitted from our Rights Issue, as well as share price appreciation.   

The future of the company is bright. We are confident that in no distant time and supported by a conducive operating environment we will reverse the negative retained earnings situation to a positive one thereby enabling the company to resume the payment of dividends to all shareholders.”

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