Nigerian Breweries Plc says it is reinforcing its operations to withstand growing macroeconomic pressures, including foreign exchange instability, inflation, supply chain disruptions, and global geopolitical tensions affecting raw material sourcing.
The company made this known during its 80th pre annual general meeting media briefing held in Lagos, where executives outlined how it is positioning itself for resilience while protecting consumers from sharp price increases.
🌍 Key Risks Facing the Business
According to the company, three major external factors are currently shaping its operating environment.
These include supply chain risks linked to the Middle East crisis, instability in the naira, and rising inflation, especially food inflation.
The Finance Director, Maria Karaseva, said the company is actively monitoring these risks and relying on the strength of its global structure to manage potential shocks.
She 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.”
💱 Managing Naira Volatility
The company also addressed concerns around currency instability, noting that fluctuations in the naira remain a key risk for operations.
Karaseva said the brewer is using financial hedging tools to reduce exposure to foreign exchange volatility while stressing the importance of macroeconomic stability.
She said:
“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. 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.”
🍞 Inflation and Consumer Pricing Pressure
Inflation, especially rising food prices, was also identified as a major concern affecting consumer demand and affordability.
The company said it is trying to balance cost pressures with its responsibility to keep products accessible to consumers.
Karaseva stated:
“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.”
She added:
“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.”
🏭 Building a Resilient Business Structure
The finance director explained that the company is actively working to build a stronger structure capable of absorbing economic shocks if conditions worsen.
She 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.”
📉 CEO Confirms Tough Operating Environment
The Managing Director and Chief Executive Officer, Thibaut Boidin, also acknowledged that Nigeria’s business environment remains highly volatile due to inflation, FX 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.”
He also noted that global geopolitical tensions continue to affect supply chains and overall business conditions.
📊 Strong Financial Recovery Despite Challenges
Despite the tough environment, Nigerian Breweries Plc reported a strong financial turnaround in 2025.
The company recorded a 35 percent increase in revenue to N1.5 trillion, while gross profit rose by 77 percent to N565 billion. Operating profit also surged by 194 percent to N205 billion.
It further posted a profit before tax of N161 billion and a net profit of N99 billion, recovering from losses recorded in the previous year.
Karaseva attributed the performance to improved cost control, stronger brand performance, and better financial positioning following its 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.”
🔮 Outlook for 2026
The company said it will continue prioritizing affordability, consumer protection, and financial discipline while navigating ongoing economic uncertainties.
It also confirmed that earnings retention will remain a priority to strengthen its balance sheet, with dividend payments expected only after full recovery stabilization.
