Nigerians spend N1.54trn on beer, soft drinks in nine months

Nigerians spent an estimated N1.54tn on beer and other non-alcoholic beverages in the first nine months of 2025, as major listed brewers recorded strong revenue growth during the period.

An analysis of the unaudited financial statements of Nigerian Breweries Plc, International Breweries Plc and Champion Breweries Plc for the nine months ended September 30, 2025, shows that the companies posted combined revenue exceeding N1.54tn, largely driven by beer sales.

Nigerian Breweries Plc, the country’s largest brewer, generated N1.05tn in net revenue, a significant increase from N710.87bn recorded in the same period of 2024. With cost of sales at N631.23bn, the company posted a gross profit of N415.15bn. After accounting for selling and distribution expenses of N193.85bn, administrative costs of N59.58bn and finance costs of N39.15bn, Nigerian Breweries reported a profit after tax of N85.51bn, compared with a loss of N149.50bn in the previous year. Earnings per share improved to 275 kobo from a loss of 1,455 kobo in 2024.

Earlier in March, the company announced a return to profitability in the first quarter of 2025, posting a 186 per cent increase in net profit year-on-year. Revenue for the period ended March 31, 2025, rose by 68.9 per cent to N383.6bn from N227.1bn in the corresponding period of 2024.

International Breweries Plc recorded revenue of N472.57bn for the nine-month period, up from N343.45bn a year earlier. The company posted a profit after tax of N57.83bn, reversing a loss of N112.81bn recorded in 2024. Cost of sales rose to N311.64bn, while administrative, marketing and distribution expenses increased to N92.09bn.

The brewer had earlier reported a profit of N11.9bn in the second quarter ended June 30, 2025, compared with a loss of N47.3bn in the same period of 2024. Revenue in Q2 2025 climbed to N167.4bn from N120bn, while gross profit rose to N61.9bn from N33.8bn.

Champion Breweries Plc also posted improved performance, recording revenue of N21.44bn for the nine months ended September 30, 2025, compared with N14.02bn in the corresponding period of 2024. Profit after tax stood at N2.05bn, up sharply from N21.50m in the previous year. Cost of sales increased to N11.14bn, while selling and distribution expenses rose to N4.24bn.

Altogether, the three brewers recorded combined revenue of N1.54tn, with Nigerian Breweries Plc accounting for the largest share.

Analysts say the figures underscore the resilience of Nigeria’s beer market, supported by strong brand loyalty and extensive distribution networks, despite rising input costs and broader economic challenges.

Commenting on consumer trends, the Head of Financial Institutions Ratings at Agusto & Co., Ayokunle Olubunmi, noted that while some consumers are cutting back on beer consumption, brewers are adjusting their strategies to remain competitive.

“Following AB InBev’s acquisition of International Breweries, the company invested in new breweries and production facilities to expand capacity. This shows that firms are focusing on scale and efficiency to meet demand and strengthen their market position,” he said.

On the broader economic implications, the Chief Executive Officer of Economic Associates, Ayo Teriba, cautioned that rising sales figures do not automatically translate into stronger economic impact.

“Bigger sales do not always mean better outcomes for the economy. What matters is the actual value added. GDP reflects value created, not just total turnover,” Teriba said.