Nigerian Breweries Plc, together with Indorama Ventures Recycling Solutions Limited, are to establish a food-grade recycling Polyethene Terephthalate (rPET) facility in Ogun State, aiming to boost sustainable packaging and enhance Nigeria’s recycling value chain.

The company disclosed the development in a notice to the Nigerian Exchange and the investing public.

Under the arrangement, Nigerian Breweries will participate as a minority investor with a 29 per cent equity stake in the project. The brewer noted that its role will be limited to investment participation and it will not be involved in the control or management of the recycling business.

The recycling plant will be developed through Indorama Ventures Recycling Solutions Limited, a special purpose vehicle created to develop, own and operate the facility. The project is being implemented in collaboration with global partners, including Indorama Ventures Public Company Limited, the majority partner, and Genesis Energy Group, which will also participate as a minority investor.

Indorama Ventures is recognised globally as a leading recycler of PET materials used in beverage packaging, while Genesis Energy Group will contribute expertise in sustainable infrastructure and energy solutions required for the project’s implementation.

Nigerian Breweries said the investment aligns with its sustainability strategy and supports the development of the local recycling industry, while also ensuring a reliable future supply of recycled PET materials for its packaging operations in line with Nigeria’s National Policy on Plastic Waste Management.

The proposed transaction remains subject to regulatory approvals, technical validation and operational implementation before the facility becomes fully operational.

The sustainability investment comes amid an improvement in the brewer’s financial performance over the past year. The company reported a pretax profit of about ₦69.9 billion in the first quarter of 2025, a sharp turnaround from a pretax loss of ₦65.5 billion recorded in the corresponding period of 2024, supported by strong revenue growth and a significant reduction in foreign exchange losses.

Revenue for the quarter rose by about 69 per cent to ₦383.6 billion from ₦227.1 billion a year earlier, while gross profit more than doubled to ₦166.5 billion as operating performance improved despite higher production and distribution costs.

Momentum continued into the second quarter of 2025, with the company posting a pretax profit of about ₦43.9 billion and lifting first half pretax profit to ₦88.4 billion. Revenue for the first half reached approximately ₦738.1 billion, representing a 54 per cent year on year increase.

For the nine-month period ended September 2025, Nigerian Breweries recorded revenue of about ₦1.04 trillion and a pretax profit of ₦129.4 billion, reflecting a significant recovery from the losses recorded in the previous year as cost management and pricing strategies supported profitability.