Following the elimination of foreign exchange (FX) exposure that had impacted negatively on its performance in recent years, Nigerian Breweries yesterday outlined a strategic shift to sustain its 2025 turnaround.

At the 80th pre-yearly general meeting press briefing held in Lagos, the managing director, Thibaut Boidin, said the company currently has no FX liabilities arising from borrowings or investment losses, marking a clear departure from the pressures experienced over the past three years.

According to him, the firm has strengthened its local supply chain by increasing engagement with domestic suppliers, while also deploying a broader range of financial hedging tools to cushion the business against currency and external market shocks.

Recall that the firm achieved Group profit before tax (PBT) of N161 billion and a net profit of N99 billion, against a loss before tax of N183 billion and a net loss of N145 billion respectively in 2024.

Boidin acknowledged that macroeconomic volatility may persist, especially with the nation’s security challenges, exacerbated by the crisis in the Middle East, but noted that the company has adapted to the environment through scenario planning and more disciplined resource allocation.

He pointed out that the company is prioritising investments in key areas, with a deliberate focus on mobilisation of resources and operational efficiency to sustain growth momentum.

According to him, the turnaround was supported by a sharp 83 per cent reduction in net finance expenses, reflecting the benefits of the 2024 rights issue, which helped the company deleverage its balance sheet and settle overdue foreign exchange payables.

He noted that the company successfully reversed its negative cash position from prior years, ending 2025 with a positive free operating cash flow, underscoring improved cost management during the period under review.

“I am proud to inform you that we were able to reverse the negative cash position from prior years. We ended 2025 with a positive free operating cash flow position.

“This showed how well we were able to manage our costs in the year under review. While the board is satisfied that the company is on a clear path to recovery, there is still work ahead of us.

“Retained earnings in our balance sheet remained negative due to the heavy net losses we suffered in the prior two years. The board appreciates your support, as we continue this recovery journey and especially our inability to resume the payment of dividends.”

Boidin also expressed concern over declining consumer purchasing power, driven by persistent inflation, which has constrained spending and contributed to a contraction in the beer market in recent years.

However, he assured shareholders that the company is engaging stakeholders, including the Manufacturers Association of Nigeria and other industry groups, to shape fiscal policies affecting the sector.

On product pricing, he said, the company remains very conscious of its consumers and will ensure it takes the right pricing decisions, balancing affordability with sustainability and overall market realities.

Also speaking at the event, the Corporate Affairs Director of Nigerian Breweries, Uzodinma Odenigbo, said the past few years had been tough and uncomfortable for the business, but added that it also brought out the resilience embedded within the organisation.

He pointed out that despite the difficult operating conditions, the company’s strong performance reflected a clear sense of focus, discipline and commitment to execution across its operations.

According to him, the results achieved during the period are an indication of the belief that sustainable growth is still possible even in a highly challenging environment, provided the right strategies, cost discipline and operational efficiency are consistently applied.