Nigerian Breweries Erases Accumulated Losses with N156.3bn H1 Profit

The Nigerian Breweries Plc has erased its accumulated losses after the brewer reported a profit before tax of N156.3 billion for the first half of 2026.

This represents an 18 per cent increase from N132.2 billion recorded in the corresponding period of 2025, as stronger revenue growth, improved margins and lower finance costs strengthened its financial position.

Its unaudited financial report released to the Nigerian Exchange Limited (NGX) on Friday also showed that its profit after tax rose to N92.95 billion, up 5 per cent from N88.4 billion a year earlier. The half-year performance marked a significant turnaround for the company, which eliminated its interest-bearing debt and restored retained earnings to a positive position after ending 2025 with an accumulated deficit.

Nigerian Breweries eliminated its interest-bearing debt and restored retained earnings to a positive position after ending 2025 with an accumulated deficit.

Net revenue increased to N803.7 billion during the six-month period, up 8.9 per cent from N738.1 billion in the corresponding period of 2025.

According to management, the growth reflected revenue management initiatives, strategic commercial execution, sustained investment in key brands and stronger contributions from premium products and the malt category.

Gross profit rose 14.1 per cent to N354.9 billion, compared with N311.0 billion a year earlier, while gross profit margin improved to 44.1 per cent from 42.1 per cent.

Operating profit also increased to N164.0 billion, representing a 7.9 per cent year-on-year growth despite rising operating expenses.

The company’s profitability also benefited from a sharp decline in financing costs.

Finance costs fell to N10.2 billion from N20.5 billion in the first half of 2025 following the elimination of borrowings.

The lower interest burden contributed significantly to the improvement in pre-tax earnings, while basic earnings per share increased to 300 kobo from 285 kobo in the previous year.

The balance sheet recorded one of the company’s strongest recoveries in recent years.

Nigerian Breweries moved from a net debt position of N74.3 billion in the first half of 2025 to a net cash position of N74.6 billion after eliminating all interest-bearing loans.

Cash and cash equivalents stood at N74.6 billion, while total assets increased to N1.09 trillion from N1.07 trillion at the end of December 2025.

Shareholders’ equity rose to N645.9 billion, compared with N560.2 billion six months earlier.

Most significantly, retained earnings returned to a positive N13.6 billion, reversing the N72.2 billion accumulated deficit recorded at the end of 2025.

Despite stronger earnings, operating expenses continued to increase.

Raw materials and consumables remained the largest cost component at N340.9 billion, although cost growth was slower than revenue growth, supporting higher gross margins.

Advertising and sales expenses rose to N71.9 billion, while distribution costs increased to N68.0 billion.

Employee benefit expenses also climbed to N48.6 billion, reflecting higher personnel costs during the period.