Nigerian Breweries posts N55.9bn profit as finance costs decline

Nigerian Breweries Plc has reported a 25.6 percent rise in profit after tax, recording N55.95 billion for the first quarter ended March 31, 2026, amid what it described as a “fragile and volatile operating environment” worsened by the crisis in the Middle East.

The brewer released its unaudited and provisional results obtained on the Nigerian Exchange Limited on Thursday, showing broad-based gains across revenue and profitability metrics.

It attributed the 8 percent revenue growth to “strong revenue management, the performance of premium brands led by Heineken lager; and execution of growth initiatives.”

According to the company, profitability was boosted by two factors, including disciplined cost control and a sharp drop in net finance expense. Gross profit grew 8 percent to N179.85 billion, while net finance expense fell 54.5 percent to N6.95 billion from N15.23 billion last year, reflecting lower borrowings and improved liquidity.

Finance income rose to N1.3 billion from N264 million, while finance cost fell to N8.2 billion from N15.2 billion.

That combination pushed profit before tax up 13.8 percent to N80.41 billion, with profit after tax climbing 25.6 percent to N55.95 billion. Earnings per share rose to 180 kobo from 143 kobo.

“The balance sheet remained strong, with continuing improvement in liquidity,” the company said in the provisional results signed by Uaboi Agbebaku, the company secretary.

“Stronger cash position supported the recent settlement of outstanding borrowings, thereby strengthening the Company’s financial position.”

The brewer noted that its Q1 performance continues the recovery trend seen through 2025, even as input costs, FX volatility, and geopolitical tensions from the Middle East crisis pressure 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 statement.

It added that due to the Middle East crisis, the company “has also intensified focus on risk management by reviewing downside scenarios and implementing mitigations across key exposures to protect performance and preserve financial flexibility.”

During the period, the cost of sales rose marginally to N233 billion from N217 billion reported the previous year, this was driven by high material cost which accounted for over 80 percent of the figure.

Selling and distribution cost rose to N73 billion as the rising cost of fuel impacted transportation cost during the period.

The company’s balance sheet remained robust, with total assets remaining at N1.1 trillion from N1.14 illion in the same period of last year.

Although cash and cash equivalents stood at a strong N132 billion, highlighting significant liquidity and treasury strength.

Trade receivables fell to N108 billion from N127 billion, reflecting that the company is selling more in cash than credit during the period.

Total equity improved to N616 billion, as negative retained earnings pressure was mitigated, underscoring the company’s ability to internally fund expansion.

Nigerian Breweries began the year with a share price of 75.30 NGN but has since lost 3.05% off that price valuation, ranking it 108th on the NGX in terms of year-to-date performance.

The company has traded a total volume of 464 million shares—in 30,368 deals—valued at N35.5 billion over the period, averaging a volume of 7.36 million shares (valued at N564 million) per session.