Nigerian Breweries Q1 2026 profit rises 25.6% to US$41.3M
Nigerian Breweries posts strong Q1 2026 profit growth, supported by premium brands and cost control, despite rising expenses and a volatile global operating environment.
NIGERIA – Nigerian Breweries Plc has reported a 25.6% increase in profit after tax to N55.95 billion (US$41.3M) for the first quarter ended March 31, 2026, as the company navigated what it described as a “fragile and volatile operating environment” influenced by geopolitical tensions and economic pressures.
Profit before tax rose by 14.9% to N80.41 billion, up from N69.99 billion (US$51.68M) recorded in the same period of 2025. Income tax declined slightly by 3.8% to N24.47 billion (US$18.07M), compared to N25.44 billion (US$18.79M) in the prior year.
Revenue for the quarter increased by 7.7% to N413.02 billion (US$304.99M) from N383.64 billion (US$283.3M), supported by strong revenue management and the performance of premium brands.
The company noted that growth was driven by “strong revenue management, the performance of premium brands led by Heineken lager; and execution of growth initiatives.”
Gross profit rose by 8% to N179.85 billion (US$132.81M) from N166.57 billion (US$123.0M) recorded a year earlier. According to the company, improved profitability was supported by disciplined cost control and a significant reduction in net finance expenses.
Finance income increased to N1.3 billion (US$959.98K) from N264 million (US$194.95K), while finance costs declined sharply to N8.2 billion (US$6.06M) from N15.2 billion (US$11.22M).
“The balance sheet remained strong, with continuing improvement in liquidity,” the company said in its provisional results signed by Company Secretary Uaboi Agbebaku.
“Stronger cash position supported the recent settlement of outstanding borrowings, thereby strengthening the Company’s financial position.”
The brewer stated that its first-quarter performance builds on the recovery momentum observed throughout 2025, despite ongoing challenges such as rising input costs, foreign exchange volatility, and the impact of the Middle East crisis on consumer spending.
“The Board and Management remain focused on execution excellence, revenue optimisation, cost control, and efficient cash management to sustain the momentum and deliver long-term stakeholder value,” the company said.
It added that it has intensified risk management efforts by “reviewing downside scenarios and implementing mitigations across key exposures to protect performance and preserve financial flexibility.”
During the period, cost of sales rose to N233 billion (US$172.06M) from N217 billion (US$160.24M), largely driven by high material costs, which accounted for more than 80% of the total. Selling and distribution expenses increased to N73 billion (US$53.91M), reflecting higher fuel and transportation costs.
Overall selling, distribution, and administrative expenses grew by 13.8% to N93.41 billion (US$68.98M), compared to N82.06 billion (US$60.6M) in the first quarter of 2025.
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