- Nigerian Breweries grew profit before tax by 18 percent to ₦156.3 billion in the first half of 2026 as stronger revenue and lower finance costs lifted earnings.
- The brewer eliminated its interest-bearing debt and returned retained earnings to a positive balance, marking a major recovery in its financial position.
- Revenue rose to ₦803.7 billion, supported by stronger sales, improved margins and sustained demand for premium brands and malt products.
Nigerian Breweries Plc recorded an 18 percent increase in profit before tax to ₦156.3 billion in the first half of 2026, driven by stronger revenue, improved operating efficiency and significantly lower finance costs.
Nigeria oil market
The brewer’s unaudited financial statements showed profit before tax rose from ₦132.2 billion recorded in the corresponding period of 2025, while profit after tax increased by five per cent to ₦92.95 billion from ₦88.4 billion a year earlier.
The company also recorded a major balance sheet turnaround by eliminating all interest-bearing debt and restoring retained earnings to a positive position after previously reporting accumulated losses.
Revenue for the six-month period rose by 8.9 percent to ₦803.7 billion from ₦738.1 billion in the corresponding period of 2025.
Revenue growth boosts margins
Management attributed the improved performance to revenue management initiatives, sustained investment in key brands, stronger execution across the business, and continued growth in premium products and the malt category.
Gross profit increased by 14.1 percent to ₦354.9 billion from ₦311 billion, while gross profit margin improved to 44.1 percent from 42.1 percent a year earlier.
Operating profit also rose by 7.9 percent to ₦164 billion, although operating margin eased slightly as higher operating expenses moderated the impact of revenue growth.
Looking ahead, management said it would continue prioritising revenue optimisation, cost efficiency, disciplined execution and strong cash generation.
Lower finance costs lift earnings
While operating costs remained elevated, Nigerian Breweries benefited from a sharp reduction in finance costs following the elimination of borrowings.
Nigeria oil market
Raw materials and consumables remained the company’s largest expense at ₦340.9 billion, while advertising, distribution and employee benefit costs also increased during the period.
However, finance costs declined by about half to ₦10.2 billion from ₦20.5 billion, providing additional support for profitability.
The improvement enabled the company to deliver stronger earnings despite continued inflationary and operating cost pressures.
Balance sheet records major turnaround
The brewer recorded one of its strongest balance sheet improvements in recent years.
Nigerian Breweries moved from a net debt position of ₦74.3 billion in the first half of 2025 to a net cash position of ₦74.6 billion after completely eliminating loans and borrowings.
Retained earnings also returned to positive territory at ₦13.6 billion, compared with an accumulated deficit of ₦72.2 billion as of December 2025.
Shareholders’ equity increased to ₦645.9 billion from ₦560.2 billion, while total assets rose to ₦1.09 trillion, supported by stronger liquidity and improved working capital.
Shares ease despite stronger earnings
Nigerian Breweries shares closed at ₦75.00 on the Nigerian Exchange on Thursday, down 2.2 percent from the previous day’s close.
Nigeria oil market
Despite the decline, the stock has gained 3.45 percent over the past month. We expect stronger earnings, debt elimination, and positive retained earnings to reinforce investor confidence as management continues its recovery strategy.
1SUBSCRIBE TO OUR NEWSLETTER NOW
Support MATAZ ARISING’ journalism of integrity and credibility.
Good journalism ensure the possibility of a good society, an accountable democracy, and a transparent government.
We ask you to consider making a modest support to this noble endeavour.
TEXT AD: To advertise here – Email ad@matazarising.com
LATEST POSTS
-
Nigerian students to get free data to access educational platforms – FG
MaTaZ ArIsInGDallas, Texas …moves to regulate internet access for under-16s The Federal Government on Thursday unveiled a major digital education intervention that will allow millions of Nigerian students to access approved educational platforms without paying for internet data, in a move aimed at dismantling one of the biggest barriers to technology-driven learning in the country.…
-
I’m not Obidient, not Kwankwasiyya, I’m NDC - Seriake Dickson
National Leader of the Nigeria Democratic Congress (NDC), Senator Seriake Dickson, has said he does not belong to either the Obidient or Kwankwasiyya political support groups, insisting that his allegiance is to the NDC. Dickson made the clarification during an interview on Arise TV’s Prime Time on Wednesday, while speaking on the relationship between the party and…
-
No rival has 10% of Tinubu’s qualities – Yari
MaTaZ ArIsInGDallas, Texas GUSAU: Director-General of the All Progressives Congress, APC, Presidential Campaign Council, Senator Abdulaziz Yari, has said none of the presidential aspirants challenging President Bola Ahmed Tinubu in the 2027 election matches him in terms of quality and competence. Yari, who represents Zamfara West Senatorial District, stated this on Wednesday while addressing members…
