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Beta Glass Plc, Nigeria’s largest manufacturer of glass packaging for the beverage and pharmaceutical industries, reported a more-than-threefold increase in profit for the second quarter of 2025 as strong demand and improved cost efficiency lifted margins.
The company’s net income rose 204 percent to N8.71 billion from N2.87 billion a year earlier, even as earnings declined from the record highs seen in the previous quarter.
Revenue jumped 57 percent year-on-year to N37.07 billion, supported by robust volumes and price adjustments. While the topline figure fell 10 percent from Q1, the company managed to protect its margins.
The company, which produces glass containers and plastic crates for the food, beverages, and cosmetics industries, plans to invest €17.5 million to expand capacity in Nigeria, its largest market, in a broader move to sustain its growth, Alex Gendis, chief executive officer of Beta Glass, told BusinessDay.
Read also: Beta Glass plans to double down exports in move to earn FX
The firm is also looking at strengthening its exports to West and Central African countries to earn foreign exchange and cut dollar borrowing, the CEO added.
“Exports will represent around 10 percent of our sales within the next two years, with an upper limit of 15 percent,” compared with 7 percent in 2024, Gendis said.
Beta Glass is maintaining its profitability streak in a country where top multinationals such as Nigerian Breweries Plc and Nestle Nigeria Plc reported recurring losses between 2023 and 2024 after the federal government abolished fuel subsidies and relaxed exchange controls.
The sweeping market reforms spiked fuel prices, raised transportation costs, and triggered a 70 percent plunge in the value of the naira against the dollar, making it expensive to import raw materials and to service dollar borrowing.
Despite the inflationary pressures, exchange-rate fluctuations, and rising costs, Beta Glass’ revenue and profit climbed as the high demand for packaging products enabled it to pass on higher inputs and currency costs to the consumer.
Gross profit more than doubled to N13.38 billion, yielding a gross margin of 36.1 percent, up from 27.1 percent a year ago. This is as operating profit climbed 113 percent to N10.72 billion, aided by moderating cost pressures.
Cost of sales rose 38 percent, lagging revenue growth, suggesting efficiency gains at the production level. However, administrative expenses doubled year-on-year to N2.54 billion, reflecting inflationary pressures and possible expansion-related outlays.
“Beta Glass continues to show resilience in its operations, outperforming inflation and currency challenges with agile cost management and revenue growth,” said Adetokunbo Salami, an independent industrial analyst based in Lagos. “Still, the sequential decline in profit from Q1 raises questions about whether the pace of growth is sustainable in the second half of the year.”
Read also: Beta Glass doubles dividend as profit surges 112% in 2024
Non-operating income contributed N1.66 billion to pretax earnings, reversing a N782 million loss a year ago. Gains were driven by a 13 percent rise in finance income to N2.36 billion and a 57 percent reduction in foreign exchange losses. Other income swung to N1.07 billion, bolstering the bottom line.
Pretax profit rose 191 percent to N12.39 billion, while tax expense surged 166 percent to N3.68 billion. Beta Glass ended the quarter with earnings per share of N13.56, up from N5.93 in Q2 2024.
Still, profit declined 13 percent from Q1 2025, when the company posted N9.99 billion in earnings, raising the possibility of a peak in momentum. Normalised profit after tax fell 21 percent sequentially.
The best performer on Nigeria’s bourse this year has seen its stock surge more than fivefold to N374, outpacing the 28 percent gain in Nigeria’s benchmark equities gauge over the same period.
The company trades at a trailing price-to-earnings ratio of about 27.6x—a premium that suggests investors expect continued earnings resilience.
