Five Blue-Chip Firms Record 202% Growth in Three Years, Benefit from FX Stability
Five major listed companies in Nigeria's brewery and telecommunications sectors have experienced a remarkable 202.2 per cent growth in their market capitalisation over three years, soaring from N11.05 trillion to N33.29 trillion. This impressive performance is largely attributed to the modest stability of the naira in the past two years, which has enabled these firms to rebound sharply in their 2025 financial results after enduring years of foreign exchange-induced losses.
Historical Challenges and Recent Recovery
The companies – Guinness Nigeria Plc, MTN Nigeria Communications Plc, Airtel Africa Plc, Nigerian Breweries Plc, and International Breweries Plc – faced severe earnings pressure in recent years due to the sharp devaluation of the naira, leading to substantial FX losses. As of April 2023, their combined market capitalisation stood at N11.05 trillion, highlighting significant value erosion driven by weak investor sentiment and currency volatility. However, from 2024 onwards, the easing of currency fluctuations, coupled with strategic balance sheet restructuring and pricing adjustments, has spurred a broad-based return to profitability, offering much-needed relief to investors after prolonged depreciation.
Industry operators have expressed optimism that with reduced FX pressures and stronger consumer spending, the outlook for these sectors is increasingly positive as they head into full-year operations for 2026.
Detailed Company Performance Highlights
Guinness Nigeria Plc reported a profit-after-tax of N41 billion in its audited 18-month results ending December 31, marking its first return to profitability since 2023. Earnings per share reached N18.79, while retained losses narrowed dramatically to N5.218 billion from N46 billion in the prior year. Revenue for the 18 months rose to N730.81 billion, with a gross profit of N240.5 billion, yielding a margin of approximately 31 per cent. Following this improved performance, the brewer declared an interim dividend of N2 per share for the quarter ending March 31, 2026, and posted a first-quarter 2026 profit after tax of N10.39 billion, up from N7.03 billion a year earlier. Notably, Guinness had incurred a total FX revaluation loss of N112.3 billion in 2024, resulting in a pre-tax loss of N73.6 billion, and suffered a N61.7 billion loss after tax in Q3 2023/2024.
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. Revenue increased by 54.9 per cent to N5.2 trillion from N3.35 trillion in the prior year. This recovery was largely driven by an improved FX position, with the company reporting a net FX gain of N90.3 billion, versus 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 significant balance sheet recovery.
Airtel Africa Plc also returned to profitability, reporting a profit before tax of $661 million for the year ending March 31, compared with a $63 million loss in the previous year. Profit after tax stood at $328 million, reversing an $89 million loss recorded in 2024. This 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. The group 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.
Nigerian Breweries Plc 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 exposure through balance sheet restructuring.
International Breweries Plc 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.
Conclusion
The collective success of these five blue-chip firms underscores the critical role of FX stability in driving corporate recovery and growth in Nigeria's economy. With continued strategic adjustments and favourable market conditions, these companies are poised for sustained performance in the coming years.
