Nigerian Breweries Plc said it has returned to a cash-positive position and sharply cut debt following a recent capital raise, giving the company room to temper price increases and navigate mounting economic risks in 2026.
Thibaut Boidin, chief executive officer, said the brewer has strengthened its balance sheet after reducing borrowings from about N200 billion at the end of 2024 to N59 billion in 2025, aided by a rights issue. The company now has no net debt and is better positioned to withstand shocks, he said.
“We are in a strong position to navigate this crisis,” Boidin said Thursday during a pre-annual general meeting briefing in Lagos, noting that the company has built its 2026 plan around multiple macroeconomic scenarios, including potential fallout from tensions in the Middle East.
The country’s biggest and oldest brewer identified inflation, foreign exchange volatility, and weak consumer demand as its biggest risks given the escalation in Iran but said it is shifting strategy after years of aggressive price increases used to offset rising costs.
“In the past, we had to price to stay afloat. Now we plan to price substantially less, at inflation at most, to keep our brands affordable,” the CEO said.
That marks a pivot toward protecting volumes in a market where high inflation has eroded purchasing power. Nigeria’s economic volatility has forced several multinationals to scale back or exit operations in recent years, but Nigerian Breweries said it remains committed to the country, citing long-term growth potential.
The brewer, like many other consumer goods firms, was caught in the web of FX volatility and sky-high inflation about three years ago. That period saw the company record two straight losses before posting a turnaround in 2025, recording a net profit of N99.1 billion, its biggest profit in at least a decade.
Despite a return to profitability, the company said it is unable to resume dividend payments for now due to accumulated losses that have left retained earnings negative. “As soon as we can, we will,” Boidin said, without giving a timeline.
The company has, however, given value to its shareholders, as its share price has more than doubled, ending 2025 at N75.3. With improved fundamentals and a clear path to profitability, its share performance is expected to outperform that of last year.
Backward integration drive to cut FX exposure
In a bid to cut its exposure to foreign exchange and strengthen its commitment to backward integration, Nigerian Breweries is stepping up efforts in its local barley cultivation, expanding to about five states in the country.
“We’re less exposed to FX needs now than years before because we’re localising our supply chains,” said Maria Karaseva, the company’s finance director.
On expansion, the brewer signalled no immediate need for new capacity investments, noting it has idle plants that can be reactivated as demand improves. Instead, it will focus on optimising existing assets and investing in its brands.
The company also warned that policy uncertainty remains a key concern. Executives said proposed measures such as tax stamps on beer could severely hit profitability and risk broader industry disruption if not carefully designed.
Still, with a stronger balance sheet, moderated pricing strategy, and ongoing cost discipline, Nigerian Breweries said it is cautiously optimistic about its outlook for 2026 despite a volatile operating environment.
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