Five major listed companies in the brewery and telecommunications sectors grew their market capitalisation by 202.2 per cent in three years from N11.05 trillion to N33.29 trillion.

The companies also achieved sharp rebounds in their 2025 results after years of FX-induced losses, gaining from the modest naira stability experienced in the past two years.

The firms – Guinness Nigeria Plc, MTN Nigeria Communications Plc, Airtel Africa Plc, Nigerian Breweries Plc and International Breweries Plc – experienced severe earnings pressure in recent years following the sharp devaluation of the naira, which triggered substantial FX losses.

As of April 2023, the combined market capitalisation of the five firms stood at N11.05 trillion, underscoring the depth of value erosion driven by FX losses and weak investor sentiment.

However, the easing of currency volatility from 2024, alongside deliberate balance sheet restructuring and pricing adjustments, has driven a broad-based return to profitability, offering relief to investors after prolonged value depreciation.

Operators expressed optimism that with reduced FX pressures and stronger consumer spending, the outlook for the sector appears increasingly optimistic heading into the 2026 full-year operations.

Guinness Nigeria Plc reported a profit-after-tax of N41 billion in its audited 18-month results ending on December 31, showing its first return to profitability since 2023.

The company’s earnings per share stood at N18.79, while retained losses narrowed significantly to N5.218 billion from N46 billion in the prior year.

Its revenue for the 18 months rose to N730.81 billion with gross profit of N240.5 billion, translating to a margin of about 31 per cent.

Based on the improved performance, the brewer declared an interim dividend of N2 per share for the quarter ending on March 31, 2026, and posted a first-quarter 2026 profit after tax of N10.39 billion, up from N7.03 billion a year earlier.

Guinness had reported a total FX revaluation loss of N112.3 billion in its 2024 operations. This resulted in a pre-tax loss of N73.6 billion within the period.

Also, in the Q3 2023/2024 (July 2023 – March 2024), the firm suffered a N61.7 billion loss after tax, a 1,000 per cent decrease from the profit generated in the same period the previous year.

Similarly, MTN Nigeria Communications Plc delivered one of the most impressive turnarounds, posting a profit before tax of N1.7 trillion in 2025 compared with a N550.3 billion loss in 2024. Its revenue also rose by 54.9 per cent to N5.2 trillion from N3.35 trillion in the prior year.

The recovery was largely driven by improvement in FX position, with the company reporting a net FX gain of N90.3 billion, compared with a N925.4 billion loss in 2024, supported by the settlement of outstanding letters of credit and reduced dollar exposure.

The improvement restored retained earnings to N400.4 billion from a negative N607.5 billion, while shareholders’ equity rebounded to N548.7 billion from -N458 billion, indicating a significant balance sheet recovery.

Also, Airtel Africa Plc also returned to profitability, reporting a profit before tax of $661 million for the year ending on March 31, compared with a $63 million loss in the previous year.

The company’s profit after tax stood at $328 million, reversing a $89 million loss recorded in 2024.

The performance was supported by a 51.7 per cent decline in net finance costs to $822 million from $1.703 billion, reflecting lower FX-related pressures and improved cost management.

Of the total finance cost, $179 million was attributable to derivative and foreign exchange losses, including $87 million in exceptional items, while underlying costs rose due to higher local currency borrowing and tower contract renewals.

The group also reduced FX risk by repaying $702 million in dollar debt and increasing the share of local currency operating company debt to 93 per cent from 83 per cent, while lease-adjusted leverage rose to 1x from 0.7x.

For Nigerian Breweries Plc, the firm posted a profit before tax of N161.06 billion in 2025, a sharp reversal from a N182.9 billion loss in 2024, as revenue increased by 35.32 per cent to approximately N1.4 trillion.

The turnaround follows a period of heavy FX pressure, with the company recording N157.5 billion in FX losses in 2024, slightly higher than N153.3 billion in 2023, before significantly reducing its exposure through balance sheet restructuring.
International Breweries Plc also returned to profitability, reporting a pre-tax profit of N88.9 billion in its 2025 audited results, compared with a N111.8 billion loss in the prior year.