International Breweries, Nigeria's second-largest beer producer, recorded a post-tax profit of N50.9 billion in the 2025 financial year, its first annual profit since 2017. This reverses a N113.6 billion net loss in 2024, according to its audited financial report released on Friday. The company, which produces Budweiser, Trophy, Hero, and Castle Lite, reported revenue growth to N619 billion, while slashing net foreign exchange losses from N165.7 billion to N13.7 billion. These gains followed years of losses beginning in 2018, driven by high finance costs, operational challenges, and currency volatility linked to Nigeria's dollar crunch and exchange reforms. The construction of its $250 million Gateway plant in Sagamu added financial strain, particularly through increased debt.
AB InBev, the Belgian parent company with a 96 per cent stake, used proceeds from rights issues in 2020 and 2024 to reduce debt, including repaying $379.9 million to Citibank. Despite the turnaround, the company's free float stands at only 4 per cent of issued shares, far below the Nigerian Exchange's 20 per cent requirement. This limited public share availability has contributed to sharp stock price movements, including a 9.9 per cent rise to N13.35 in Lagos trading after the earnings announcement—the stock's best daily gain in 2025.
AB InBev's near-total ownership of International Breweries—96 per cent—reveals how corporate control can quietly bypass market rules meant to protect public investors. While the company celebrates a return to profitability, the reality is that only a sliver of its shares trades freely, making the recent 9.9 per cent price surge less a vote of confidence than a function of artificial scarcity.
The Nigerian Exchange mandates a 20 per cent free float or N40 billion in publicly tradable shares, yet International Breweries operates well below this threshold. This situation did not emerge overnight—it was enabled by successive rights issues that diluted minority shareholders and channelled fresh capital to AB InBev, which used the funds to retire debt. The result is a listed company in name, but in practice, one that functions more like a private asset, with pricing dynamics untethered from broad investor sentiment.
For ordinary Nigerians holding shares or considering investment, this means limited opportunity to participate in gains. Retail investors face a market where headline profits and rising prices don't necessarily translate into accessible value. The case underscores a quiet but growing trend: foreign-owned Nigerian firms complying with the letter of financial reporting rules while sidestepping the spirit of market inclusivity. When public markets serve only a few, the broader promise of wealth distribution through equity ownership remains unfulfilled.
