Balance Sheet Recovery and Debt Elimination
Nigerian Breweries Plc successfully cleared its entire interest-bearing debt during the first half of 2026. The company's loans and borrowings dropped to zero from N152.0 billion in the corresponding period of 2025.
This debt elimination helped the brewer transition from a net debt position of N74.3 billion in H1 2025 to a net cash position of N74.6 billion in H1 2026. Cash and cash equivalents stood at N74.6 billion, up from N61.1 billion in December 2025.
Furthermore, the company restored its retained earnings to a positive N13.6 billion. This marks a full recovery from the accumulated deficit of N72.2 billion recorded as of December 2025, significantly strengthening the company's equity base to N645.9 billion.
Revenue Growth and Cost Pressures
Net revenue for the period grew 8.88% year-on-year to N803.7 billion, up from N738.1 billion in H1 2025. Gross profit expanded by 14.10% to N354.9 billion, pushing the gross profit margin up to 44.1% from 42.1% in the previous year.
Management attributed the revenue growth to strategic brand investments, revenue management actions, and strong performance in the premium and malt categories. However, operating expenses rose, with advertising and sales expenses increasing to N71.9 billion from N59.5 billion.
Distribution expenses also climbed to N68.0 billion from N54.1 billion, while employee benefits rose to N48.6 billion from N41.2 billion. Raw materials and consumables remained the largest cost component at N340.9 billion, though they grew slower than revenue.
Profitability and Market Performance
Operating profit increased by 7.95% to N164.0 billion, though the operating margin declined slightly by 0.85 percentage points to 20.40%. Finance costs fell sharply by 50.2% to N10.2 billion from N20.5 billion due to the debt elimination.
Profit after tax grew 5% to N92.954 billion from N88.4 billion, while basic earnings per share rose to 300 kobo from 285 kobo. Total assets increased to N1.09 trillion, driven by higher trade receivables of N135.4 billion, while property, plant, and equipment remained the largest asset component at N594.6 billion.
On the Nigerian Exchange, Nigerian Breweries stock closed at N75.00 on July 30, 2026, representing a 2.2% daily decline from its previous close of N76.70. Despite this, the stock recorded a 3.45% gain over the month, while its year-to-date performance stood at a minor decline of 0.40%.
