Nigerian Breweries Plc is expanding its sustainability push with a strategic investment in a new food-grade plastics recycling facility in Ogun State, a move aimed at strengthening Nigeria’s circular packaging economy and securing a future supply of recycled materials for the beverage industry.
The brewer disclosed in a notice to the Nigerian Exchange Limited that it will partner with Indorama Ventures Recycling Solutions Limited to establish a polyethylene terephthalate (rPET) recycling plant in the state.
Under the arrangement, Nigerian Breweries will hold a 29 per cent minority equity stake in the project, while operational control and management will remain with the project’s promoters.
The recycling facility will be developed through Indorama Ventures Recycling Solutions Limited, a special purpose vehicle created to develop, own and operate the plant. The initiative is part of a collaboration involving Indorama Ventures Public Company Limited as the majority investor and Genesis Energy Group as another minority partner.
The planned facility will focus on producing food-grade recycled PET (rPET), a material widely used in beverage bottles and other consumer packaging.
Indorama Ventures is globally recognised as one of the world’s leading recyclers of PET materials used in beverage containers, while Genesis Energy Group is expected to provide expertise in sustainable infrastructure and energy systems required for the project’s development.
For Nigerian Breweries, the investment forms part of a long-term strategy to embed sustainability into its supply chain while supporting the growth of Nigeria’s recycling industry.
The brewer said the initiative aligns with its environmental commitments and supports implementation of the National Policy on Plastic Waste Management, which encourages the recovery and reuse of plastic materials to reduce environmental pollution.
Beyond environmental goals, the project is expected to help ensure a reliable domestic supply of recycled PET for packaging, reducing reliance on imported materials while strengthening Nigeria’s local recycling value chain.
Regulatory approvals pending
The companies said the transaction remains subject to regulatory approvals, technical validation and operational implementation before construction and full commercial operations can begin.
If completed, the facility would mark a significant step toward building large-scale recycling infrastructure in Nigeria, where plastic waste management remains a growing environmental challenge.
Financial turnaround supports expansion
The sustainability investment also comes at a time when Nigerian Breweries is reporting a strong recovery in its financial performance after a challenging period marked by foreign exchange losses.
The company posted a pretax profit of about N69.9 billion in the first quarter of 2025, reversing a pretax loss of N65.5 billion recorded in the corresponding period of 2024.
The turnaround was driven largely by strong revenue growth and a sharp reduction in foreign exchange-related losses.
Quarterly revenue rose 69 per cent to N383.6 billion from N227.1 billion a year earlier, while gross profit more than doubled to N166.5 billion as improved operational performance offset higher production and distribution costs.
Momentum continued into the second quarter of the year, with the brewer posting pretax profit of about N43.9 billion, bringing total pretax profit for the first half of 2025 to N88.4 billion.
Revenue for the six-month period reached N738.1 billion, representing a 54 per cent year-on-year increase.
By the end of the nine months to September 2025, Nigerian Breweries reported revenue of about N1.04 trillion and pretax profit of N129.4 billion, reflecting a significant recovery from the losses recorded in the previous year.
