Nigerian Breweries H1 profit rises 18% to N156.3 billion, erasing accumulated losses
Financial Recovery
Nigerian Breweries Plc has released its unaudited first-half 2026 financial results, reporting profit before tax rising to N156.3 billion. This figure represents an 18% increase compared with N132.2 billion recorded in H1 2025. The company’s profit after tax for H1 2026 stood at N92.954 billion, up 5% from N88.4 billion in the same period last year. A major highlight of the results was the company’s balance sheet recovery. Nigerian Breweries eliminated its interest-bearing debt position and returned retained earnings to positive territory.
Management stated that revenue growth was supported by revenue management actions, strategic initiatives, sustained investment in key brands, and improved execution across the value chain. The company noted that gross profit margin expanded by 2 percentage points. Improved liquidity and reduced financing pressure strengthened its financial position. Borrowings had been kept at zero level, and retained earnings had been restored to a positive position. Looking ahead, management said it remains focused on disciplined execution, revenue optimization, cost efficiency, and strong cash generation while maintaining financial flexibility.
Related: Filmhouse sees record presales as Spider-Man passes 3,500 tickets
Operational Breakdown
Revenue increased to N803.7 billion from N738.1 billion, while gross profit expanded faster, rising to N354.9 billion from N311.0 billion. The improvement in gross profit resulted in a wider margin, indicating that revenue growth was achieved alongside better cost management. The company’s cost structure remained heavily weighted toward raw materials and consumables, which stood at N340.9 billion. This accounted for more than half of total expenses. However, raw material costs grew more slowly than revenue, helping support margin expansion.
Other operating costs increased during the period. Advertising and sales expenses rose to N71.9 billion from N59.5 billion. Distribution expenses increased to N68.0 billion from N54.1 billion. Employee benefits increased to N48.6 billion from N41.2 billion. This reflects higher operating costs during the period. The increase in operating expenses contributed to a marginal decline in operating margin. Despite the company recording growth in operating profit, operating profit margin declined marginally by 0.85 percentage points to 20.40%.
Finance costs declined significantly to N10.2 billion from N20.5 billion. This followed the company’s move to eliminate borrowings. The reduction in finance costs provided further support to profitability, contributing to the improvement in profit before tax during the period. The balance sheet improvement was the strongest feature of the period. Nigerian Breweries transitioned from a net debt position of N74.3 billion in H1 2025 to a net cash position of N74.6 billion in H1 2026. This shift was supported by the elimination of loans and borrowings and stronger cash holdings.
Related: SpaceX stock plunges 32 percent from peak
The company’s loans and borrowings reduced to nil from N152.0 billion in the corresponding period. Cash and cash equivalents stood at N74.6 billion, compared with N77.7 billion in H1 2025. The move from a debt-funded position to a net cash position significantly strengthened the company’s financial flexibility and reduced exposure to finance costs. The stronger liquidity position also contributed to a modest expansion in the company’s asset base. Total assets rose to N1.09 trillion from N1.07 trillion as of December 2025. The increase was driven mainly by higher current assets, particularly trade and other receivables. These increased to N135.4 billion from N69.4 billion.
Property, plant and equipment remained the largest component of the asset base at N594.6 billion. This highlights the capital-intensive nature of the business. On the liabilities side, trade and other payables remained significant at N377.7 billion. This accounted for a substantial portion of liabilities, indicating continued reliance on supplier financing to support operations. Nigerian Breweries closed its last trading session on Thursday, July 30, 2026, at N75.00 per share on NGX. This represented a 2.2% decline from its previous closing price of N76.70. Despite the day’s decline, the stock recorded a month-to-month gain of 3.45%.