International Breweries Plc announced a pre-tax profit of N40.31 billion for its first quarter of 2026, a 15% rise from the N35.07 billion recorded in the same period of 2025. This improved profitability was largely attributed to enhanced cost efficiency and stronger gross margins.

The company's Q1 2026 financial results, filed with the Nigerian Exchange (NGX) on Friday, April 24, 2026, showed a modest revenue growth of 2.9%, reaching N178.71 billion from N173.63 billion in Q1 2025. However, a significant reduction in the cost of sales played a crucial role in boosting overall profitability.

Key financial metrics for Q1 2026 compared to Q1 2025 include: Revenue increased by 2.9% to N178.71 billion; Cost of sales decreased by 9.1% to N103.61 billion; Gross profit rose by 25.9% to N75.09 billion; Operating expenses saw a rise of 28.9% to N35.44 billion; Pre-tax profit grew by 15.0% to N40.31 billion; Post-tax profit declined by 33.2% to N19.62 billion; Finance cost surged by 82.8% to N3.58 billion; Total assets increased by 6.1% to N784.86 billion; Total liabilities grew by 10.6% to N265.42 billion; Total equity rose by 3.9% to N519.44 billion; and Earnings per share (EPS) fell by 29.4% to 12 kobo from 17 kobo.

The primary driver behind the profit growth was improved production efficiency, which saw the cost of sales decline to 58.0% of revenue from 65.7% in the previous year. This was due to lower material costs and better cost management, despite increases in employee costs, technical fees, and marketing expenses.

Operating expenses, however, increased by 28.9% to N35.44 billion, reflecting higher spending on distribution, advertising, and administrative activities. Finance income decreased by 23.2% to N4.22 billion, while finance costs increased by 82.8% to N3.58 billion, partially offsetting the gains from core operations.