Nigerian Breweries Plc has assured stakeholders and consumers that it is strengthening its operations against key risks, including supply chain disruptions linked to the Middle East crisis, naira instability, and rising inflation, particularly food inflation.
The company outlined strategies to sustain growth and protect consumers from pricing shocks during its 80th pre-annual general meeting media briefing held in Lagos on Thursday. Explaining the strategies, NB Plc Finance Director Maria Karaseva said the brewer had identified three major external risks and was proactively managing them to build resilience. She noted that Heineken’s financial moat kept the company relatively secure.
Karaseva said, “We are pulling out three factors, and they have different impacts on us. First is the sustainability of supply driven by the Middle East crisis, which affects our ability to maintain consistent production levels and meet market demand. Here we are relatively in control. We are part of the Heineken Group. Heineken is our major investor. We are relying on the proven supply cusps and tracks. We are tracking regularly the sustainability of our supply. We see no big issues coming out of Nigeria from what is going on.”
Karaseva added that the company was leveraging its relationship with its majority shareholder to cushion potential supply shocks.
On currency volatility, she said the firm was deploying financial hedging tools to protect its business, particularly in response to the instability of the naira, which has been fluctuating significantly against major currencies. “The second thing is the instability of the naira. We have observed it so far. The naira passed the stress test when the crisis happened,” she noted. “It continues to be stable, and I should say that this is fundamental for the economy of Nigeria to have a stable currency. We really ask the government to continue with its efforts to keep the naira’s stability in place. From our side, we are also using financial instruments and tools to protect us against potential volatility.”
Addressing inflationary pressures, particularly rising food prices, Karaseva said the company was focused on maintaining affordability for consumers through flexible pricing strategies.
She said, “The third factor on the macro level which can impact us is the rise in inflation, especially in food. We, as Nigerian communities, feel a responsibility as leaders of this category. We feel responsible for what happens with the price of the products and the affordability of our products to the consumers. So we are doing all that we can.
“We have a very wide tool set on how not to take pricing further in this difficult environment. We have global food practices which we are bringing to Nigerian ground to contain pricing inflation.”
The finance chief added that the company was building a resilient structure capable of absorbing shocks if conditions worsen.
Karaseva said, “So these are the major risks, and we are on a pathway to build a resilient structure which will help us to absorb those shocks at least if they don’t escalate any further.”
The Managing Director/Chief Executive Officer, Thibaut Boidin, also acknowledged that the operating environment remained volatile, citing inflation, foreign exchange pressures, and weak consumer purchasing power.
He said, “It’s not a secret that we’re operating in a very volatile environment, a very complex environment. (Although) In 2025, we can all recognise that the macroeconomic environment was a bit more stable than in the previous years, but we remain dependent on FX, and purchasing power remains under pressure.”
Boidin noted that the Middle East crisis continued to pose risks to the broader economy, while inflation had constrained beer consumption due to reduced disposable income.
Despite the challenges, the company reported a strong financial rebound in 2025. Group revenue rose by 35 per cent to N1.5tn, while gross profit increased 77 per cent to N565bn. Operating profit grew 194 per cent to N205bn.
The brewer also returned to profitability, posting a profit before tax of N161bn and a net profit of N99bn, compared to losses recorded in 2024.
Finance director Karaseva attributed the turnaround partly to improved cost management and reduced finance expenses following the company’s 2024 rights issue.
She said, “2025 was really a financially successful year for us. In 2024, the operating environment was really difficult, but in 2025, the stability of the Naira, the strength of our brands, and a focus on premiumisation supported the growth in our results.”
The company also recorded a positive cash flow position after years of negative balances, reflecting improved operational efficiency.
Looking ahead, Nigerian Breweries said it would prioritise consumer protection and affordability while maintaining financial discipline.
Karaseva said, “Taking very accurate revenue management, not passing all the problems happening around us to our consumers, is our prime goal, and we will see that in the year 2026.”
NB Plc added that while it had made a significant recovery, it would retain earnings to strengthen its balance sheet amid ongoing uncertainties, with dividend payments to resume once the business fully exits its recovery phase.