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By Chukwuma Umeorah
Nigerian Breweries Plc has unveiled a multi-layered strategy to shield its operations from foreign exchange volatility, inflationary pressures and policy shocks in 2026.
It is pivoting from crisis recovery to a deliberate build-up of what management describes as a “financial shield” designed to prevent a repeat of the losses recorded in recent years.
At its pre – 80th Annual General Meeting (AGM) media roundtable in Lagos, top executives said the company is relying on scenario planning, reduced FX exposure, stronger liquidity, disciplined cost management and supply chain localisation to navigate what they termed a “very volatile” operating environment.
The strategy follows a sharp financial turnaround in 2025, when the brewer returned to profitability after two years of heavy losses driven largely by currency devaluation and macroeconomic shocks. Financials show revenue rose to about N1.47 trillion in 2025 from N1.08 trillion in 2024, while profit after tax rebounded to roughly N99 billion from a loss of N144.9 billion a year earlier.
Similarly, Profit before tax climbed to about N161 billion, reversing a loss of over N180 billion in 2024, while operating profit surged by about 194 per cent, reflecting tighter cost control and improved efficiency.
Managing Director, Thibaut Boidin, described 2025 as a defining year for the company. “You can see that on all the key metrics, we outperformed what we expected,” he said, adding that the company delivered “close to N100 billion” in net profit and moved from a negative cash position to a positive one.
But beyond the numbers, the turnaround appears to have fundamentally reshaped the company’s approach to risk. “We learned a lot in the last years, how to navigate a crisis, how to work in a better way, how to focus on the key components of winning and growing,” Boidin said. According to him, those lessons now underpin what the company describes as its shock-absorption framework for 2026.
Planning drives risk response
Behind its risk management strategy is what the company described as a structured scenario planning framework built around key macroeconomic triggers. Boidin explained that rather than relying on a single forecast, the company mapped out multiple possible economic scenarios for 2026, each tied to variables such as exchange rate movements, inflation, consumer purchasing power and geopolitical shocks.
“What we’re doing differently is we build our plans for this year based on scenarios. We mapped all kinds of scenarios to make sure that we know how to respond to any case.”
He added that some of these scenarios are already playing out, particularly in relation to global tensions. “We were not expecting the Middle East crisis, but we anticipated because we did scenario planning,” he said.
To ensure real-time responsiveness, the company said it has instituted continuous monitoring mechanisms. “We have a weekly meeting on these macroeconomic triggers, and every week we measure what the impact will be,” he added.
This marks a significant departure from the reactive posture that characterised earlier periods, particularly during the 2023–2024 FX crisis.
FX exposure cut to zero
After losing N153.3 billion in 2023 and N160.48 billion due to the devaluation of the naira and high exposure to foreign-currency-denominated debt and raw material imports, one of the most critical pillars of the company’s shock-absorption strategy is the near elimination of foreign exchange liabilities.
The company’s Finance Director, Maria Karaseva disclosed that Nigerian Breweries has effectively wiped out its FX-denominated debt exposure. “As of today, we don’t have forex liabilities in the form of borrowing or investment needs anymore,” she said.
Total borrowings fell from over N200 billion in 2024 to about N59 billion in 2025, supported by proceeds from its rights issue. “Forex-denominated debts went down to zero, which significantly improved our financial position,” she added.
Local sourcing to reduce import dependence
Beyond debt reduction, the company is also tackling FX exposure at the operational level through an aggressive localisation strategy.
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Management said the share of local suppliers has risen significantly, reducing dependence on imports. The initiative is supported by programmes such as its barley development scheme aimed at strengthening domestic agricultural supply chains.
However, the company noted that further gains will depend on policy support, particularly improved access to financing and infrastructure for farmers. “We are looking at policies that will help unlock access to financing for our farmers.”
Liquidity strengthens shock absorption
While acknowledging that another major line of defence is liquidity, Nigerian Breweries emphasised that its improved cash position, transitioning from negative to positive provides critical flexibility in navigating shocks.
The company reported ending 2025 with a positive cash position after years of deficits, reflecting improved working capital management and operational efficiency.
This liquidity buffer allows the company to absorb shocks without resorting to excessive borrowing or aggressive price increases. “We are now cash positive and we have resources to navigate difficult environments,” Karaseva added.
Cost discipline without compromising core operations
While cost control remains central to the company’s strategy, management insists that it will not come at the expense of product quality or employee welfare. “We will continue strong cost management, but without compromising what is important, quality, safety, salaries,” Boidin said.
This balanced approach reflects lessons from previous periods where cost pressures threatened operational stability. In 2025, cost discipline played a major role in restoring profitability, with both variable and fixed costs growing at a slower pace than revenue.
Moderated pricing strategy
The brewer also signalled a shift in pricing strategy, moving away from frequent price increases that characterised previous years.
“In the past, we had to pay a price to stay afloat. Now we are planning to price substantially less,” Karaseva said, citing weak consumer purchasing power as a key concern for 2026.
Key risks identified for 2026
Despite its improved position, the company acknowledged that significant risks remain. According to management, the three major threats are: Inflation and its impact on consumer purchasing power, continued currency volatility and broader macroeconomic instability. The company also highlighted political and policy risks, particularly as Nigeria approaches another electoral cycle.
Growth phase begins
With its balance sheet stabilised, Nigerian Breweries said it is shifting focus from recovery to expansion. “We were focused on recovery for the last three years. We are now focusing on growth,” Boidin said.
The company plans to drive growth across its portfolio, leveraging premium brands such as Heineken alongside value offerings like Goldberg and Life. It also reported strong momentum in the stout and malt segments, with Legend and Maltina gaining traction.
No dividend despite profit rebound
Despite returning to profitability, shareholders would not be rewarded. The company will not declare dividends for 2025 due to accumulated losses. “As long as retained earnings are negative, the law does not allow you to pay dividends,” Karaseva said.
