Rating Release

Agusto & Co. hereby affirms the “A+” rating assigned to Nigerian Breweries PLC (“Nigerian Breweries”, “NBPLC” or “the Company”), with a stable outlook 

The rating expires on 30 June 2026. 

Agusto & Co. hereby affirms the “A+” rating assigned to Nigerian Breweries PLC (“Nigerian Breweries”, “NBPLC” or “the Company”). The rating affirmation reflects the robust financial backing from its parent company, Heineken N.V., which is rated ‘A3’ by Moody’s and ‘BBB+’ by Standard & Poor’s. This support is demonstrated through oversea input sourcing and a recent equity injection via a rights issue. The rating also considers NBPLC’s improving profitability and leverage metrics, following the conversion of its foreign-currency debt to equity – a step that has lowered its exposures to foreign exchange risk and reduced debt service obligations. In addition, we note positively the relative stability in the foreign exchange (FX) market, which is expected to support more predictable input sourcing and enhance pricing efficiency, thereby sustaining margins in the near term. The Company’s strong liquidity profile and continued market leadership further underpin the rating. However, the rating is constrained by NBPLC’s weak cash flow position and inadequate working capital.

NBPLC is Nigeria’s oldest and largest brewer. The Company is strategically important to Heineken’s operations in Africa and continues to receive group support, including a recent capital injection through a rights issue which raised Heineken’s equity stake from 56.6% to 72.9%. The Company operates seven breweries and one malting plant, supported by an extensive sales and distribution network that ensures strong national coverage and efficient product delivery. In line with its diversification strategy beyond core beer, NBPLC acquired an 80% equity stake in Distell Wines and Spirits Nigeria Limited in 2024 and the remaining 20% in 2025, thereby assuming full ownership.