Nigerian Breweries Plc (NB) is expected to declare a FY'25 PAT of N165.5 billion, which should represent a material recovery from the N144.9 billion loss reported in FY'24 and a multi-year high. This strong recovery, which appears to have set in Q4'24 and accelerated in Q1'25, looks set to ride stronger-than-expected volume recovery amid favourable prices and tamer cost pressures. We also see scope for a 5-year operating profit CAGR of 22.1% (vs 20.9% in previous projection). This change and other adjustments to our model resulted in a new 12-month Target Price ("TP") of N61.54 and a HOLD recommendation on the ticker.
