INTERNATIONAL Breweries Plc has posted its first full-year profit in seven years, marking a major turnaround for Nigeria’s second-largest brewer after prolonged foreign-exchange shocks kept it in the red.

The brewer reported a profit after tax of N63.34 billion for the year ended December 2025, reversing a N113.61 billion loss recorded in 2024, according to its unaudited financials on the Nigerian Exchange (NGX).

The return to profitability was driven mainly by a sharp drop in foreign exchange losses, following a period of relative stability in the naira. For years, heavy currency devaluations had wiped out the company’s operating gains, even when beer sales were growing.

In 2024, the naira lost about 41 percent of its value, triggering massive FX revaluation losses and hedge adjustments that exceeded N113 billion. By contrast, the currency strengthened by 7.5 percent in 2025, which was its first annual gain in more than a decade, allowing FX losses to narrow sharply.

Net foreign exchange losses fell to just N3.0 billion, supported by lower realised losses and unrealised FX gains of N6.5 billion, compared with heavy unrealised losses the previous year. This swing below the operating line proved decisive.

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As a result, profit before tax surged to N85.1 billion, compared with a N111.8 billion loss in 2024.

Top-line performance also improved. Revenue climbed 27 percent to N620.1 billion, supported by price adjustments, higher volumes, and a more stable operating environment. Gross profit rose to N204.4 billion from N131.4 billion a year earlier, reflecting stronger sales despite rising costs.

However, expenses remained elevated. Cost of sales increased to N415.7 billion, driven by higher raw material prices, energy costs, and logistics expenses. Administrative, marketing, and distribution costs also rose to N128.2 billion, reflecting inflationary pressures across the value chain.

One key improvement in the company’s financial position was the absence of borrowings. International Breweries ended the year with no outstanding loans or overdrafts, helping it avoid the high interest costs that had previously worsened losses.

Cash flows strengthened alongside earnings. Cash generated from operations reached N129.5 billion, enabling the company to fund N112 billion in capital expenditure on plants and equipment. Cash and cash equivalents rose to N155.7 billion, up from N109.2 billion in 2024.

“During the 12 months ended 31st December 2025, the company acquired plant, property and equipment with a total cost of N112 billion (12 months ended 31st December 2024: N72 billion),” International Breweries said.

International Breweries has a positive net assets ratio, with N741.53 billion assets and N229.278, billion liabilities, which implies that it owns more than it owes.

“The company’s return to profit is a positive step towards stability,” said an emerging markets analyst, Mr Ike Ibeabuchi.”It has an impairment reversal on financial assets, which means it expected a loss on the money that should be paid by customers, but suddenly they paid.

“Now, what they need to do is to work on their cost structures. Their cost of production, administrative and marketing expenses are rising. Something should be done about them.”

The brewer’s stronger performance also helped reduce accumulated losses. Retained losses narrowed to N178.6 billion from N241.9 billion, lifting total equity to N512.2 billion.

Despite the turnaround, the brewer’s outlook remains closely linked to macroeconomic conditions. Input costs are still high, consumer spending is under pressure, and the company remains exposed to currency swings in Nigeria’s import-dependent brewing industry.

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Investor sentiment also remains cautious. Shares of International Breweries have fallen 6 percent in the past four weeks, after posting a 170 percent gain over the previous year.

“Looking ahead, the Industry is expected to maintain revenue growth, supported by demographic tailwinds and ongoing product innovation,” Agusto Research said in 2025.

4″Nonetheless, real consumption could be tempered by macroeconomic challenges. Market leaders should continue to pursue operational restructuring, digital transformation and deeper penetration into underserved markets to sustain profitability.”