Zambian Breweries operating profit rises 27% to US$21.6M in H1 2026
Higher productivity and lower production costs lifted Zambian Breweries’ gross and operating profits despite rising finance costs and demand pressures.
ZAMBIA – Zambian Breweries Plc reported a strong first-half performance in 2026, with operating profit rising 27% to ZMW413 million (US$21.59M), supported by improved productivity, disciplined cost management and strong commercial execution.
Net revenue increased 4% to ZMW2.86 billion (US$149.54M), while gross profit climbed 31% to ZMW1.54 billion (US$80.52M), reflecting the resilience of the business and strength of its portfolio. The gross profit improvement was driven by lower production costs following enhanced operational productivity across brewery operations and manufacturing gains.
However, profit after tax fell to ZMW106.3 million (US$5.56M) from ZMW202.3 million (US$10.58M) in the corresponding period last year, mainly due to higher finance costs and an increased effective tax charge.
Net finance costs increased by ZMW51 million following the Group’s balance-sheet restructuring and de-dollarisation programme, which is aimed at reducing foreign exchange exposure and strengthening long-term financial stability.
Thais Cavinatto, Country Director of Zambian Breweries Plc, said: “We are encouraged by the progress achieved in the first half of the year. Growth in revenue, gross profit and operating profit reflects the strength of our brands, our productivity agenda and the discipline with which we are managing the business. While some demand pressures remain, we are focused on building a stronger and more resilient business for the long term.”
Looking ahead, Zambian Breweries said it remains focused on sustainable growth through revenue optimisation, productivity improvements, disciplined capital allocation and strong cash generation.
Sustainability remains a strategic priority, supported by investments in local agriculture value chains, water stewardship initiatives, and energy and emissions efficiency programmes.
The company also highlighted the importance of a stable and predictable operating environment for long-term investment, business growth and value creation. It said effective enforcement against illicit alcohol and a balanced regulatory framework remain important to ensuring fair competition, protecting consumers, safeguarding government revenues and supporting sustainable growth in the formal beverage sector.
“We remain confident in our outlook for the second half of the year. Our focus remains on delivering sustainable growth, strengthening business fundamentals and creating long-term value for our shareholders and stakeholders,” said Cavinatto.
She added that continued collaboration among industry, government and other stakeholders would be important in maintaining an environment that supports investment, formalisation and broad-based economic growth.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
