International Breweries, one of Nigeria’s top brewers, has continued its profitability run in the second quarter of 2025, supported by reduced foreign exchange pressures that lifted net finance income.
The beer maker saw its net income for Q2 rise to N11.91 billion, down from a loss of N47.32 billion. This brings the total half-year profit to N41.29 billion, compared to a significant loss of N107.71 billion.
This rebound follows a tumultuous seven-year-long loss, even as revenue growth keeps rising.
International Breweries, like other brewers, is riding on a relative stability of the naira that has endured multiple shocks before its now rare calmness in the last six months.
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The naira has been largely stable and remained unwavering even in the face of global crises that saw emerging markets currencies weaken against the dollar. Naira has been within 1500/1550 per one dollar bandwidth, boosting earnings of businesses exposed to foreign exchange.
Also supporting the company’s growth is a decelerating inflationary trend that has helped taper cost growth.
The brewer’s performance was equally significantly boosted by strong revenue growth, which rose 39.5 percent year on year, a sharp decline in realised FX loss by 22.9x and higher finance income, which surged 116.5 percent.
The brewer recorded a net finance income of N1.94 billion in Q2-25 as against a net finance cost of N21.91 billion last year, primarily driven by a substantial rise in finance income which rose 116.5 percent on a year-on-year basis amid a 91.8 percent y/y decline in finance costs.
“INTBREW’s Q2-25 performance reflects a strong rebound, underpinned by improved operational efficiency, successful brand repositioning, and significantly lower FX-related pressures,” Cordros Research wrote in a note on Tuesday.
“The return to profitability also highlights the impact of their strategic shift towards cost optimisation, including energy transition and localisation of inputs.”
