Nigerian Breweries reports 5% rise in first-half profit as finance costs decline sharply
Nigerian Breweries strengthened its balance sheet, eliminated debt and recorded higher revenue as premium brands and malt products supported growth.
NIGERIA – Nigerian Breweries Plc continued its earnings recovery in the first half of 2026, reporting a 5% increase in profit after tax as lower finance costs helped offset rising operating expenses and higher taxation.
According to the brewer’s unaudited financial statements, profit after tax increased to N92.95 billion (US$68.27M) during the six-month period, compared with N88.42 billion (US$64.4M) recorded during the corresponding period in 2025. Profit before tax rose by 18% to N156.33 billion (US$114. 84M) from N132.24 billion (US$97.12M) a year earlier.
The improved performance was supported by a significant decline in net finance costs, which fell by 61% to N7.65 billion (US$5.62M) from N19.65 billion (US$14.44M).
Revenue increased by 9% to N803.68 billion (US$590.59M), up from N738.14 billion (US$542.34M) in the same period last year. The company attributed the growth to pricing initiatives, continued investment in strategic brands, premiumisation efforts and sustained growth in the malt category despite challenging market conditions.
Gross profit rose by 14% to N354.86 billion (US$260.68M), resulting in an improvement in gross profit margins. Operating profit also increased by 8% to N163.97 billion (US$120.47M).
However, operating expenses continued to rise as the company expanded investments in marketing, distribution and workforce development. Selling, distribution and administrative expenses climbed by 20% to N192.99 billion.
Advertising and sales expenses increased from N59.51 billion to N71.93 billion, while employee benefit costs rose from N41.24 billion to N48.63 billion. Distribution expenses also grew to N68.04 billion from N54.11 billion.
Despite higher revenue and operating profit, net earnings growth was constrained by a 45% increase in income tax expenses, which rose to N63.37 billion from N43.83 billion. As a result, the company’s effective tax rate increased to 40.54%, compared with 32.7% a year earlier.
The brewer’s balance sheet also strengthened considerably during the reporting period. Nigerian Breweries ended the first half of the year without any outstanding loans or borrowings, compared with more than N152 billion in debt during the same period in 2025. Cash and cash equivalents stood at N74.63 billion.
Management attributed the performance to stronger revenue management strategies, sustained investment in key brands and improved liquidity.
The company stated that the elimination of borrowings had enhanced financial flexibility and strengthened retained earnings.
Looking ahead, Nigerian Breweries said it will continue focusing on revenue growth, cost management, cash generation and operational efficiency while adapting to changing market conditions.
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