While Nigerian Breweries Plc has efficiently converted sales into actual profit, the company was affected by the cost of living crisis that prevented consumers from opening their purse strings as evidenced in slowing revenue growth.
For the first three months through March 2026, Nigerian Breweries’ profit after tax (PAT) increased by 25.25 percent to N55.94 billion from N44.55 billion as at March 2025.
Net profit Margin, a key measure of profitability and efficiency with a higher ratio signaling an improvement, rose to 13.54 percent in the period under review from 11.61 percent as at March 2025.
It is important to note that the margin expansion and uptick in the bottom line (profit) were largely driven by a reduction in policy rates by the central bank which helped reduce borrowing costs that resulted in a fall in finance costs.
Also, the gradual stability in the foreign exchange market eases pressures on imported inflation, which is responsible for cost containment, but there are concerns that political spending could alleviate pressure on the parallel foreign exchange market, which means the resurface of foreign exchange losses.
Cost of living crisis hits Revenue
Nigerians are beset by a cost of living crisis, driven by inflationary pressures and currency devaluations (removal of subsidy on fuel, unification of the foreign exchange market),  which balloons the prices of alcoholic beverages, forcing consumers who can’t afford beer to downgrade to cheap sachet hot drinks or whisky’s.
Nigerian Breweries has been hit by the aforementioned crisis as its sales increased by 7.65 percent to N413.04 billion as at March 2026.
That compares with an uptick of 68.91 percent 84.18 percent in the corresponding periods of 2025 and 2024. These impressive performances were largely underpinned by strategic price increases to offset inflationary cost pressures, alongside improved sales volumes.
Drilling down the numbers shows sales dipped by 10.49 percent in 2023, as cash shortages following the Naira redesign by the central bank in the first quarter of that year constrained household spending and weighed on volume outturn.
Similarly, revenue was down 1 percent in 2020, as the coronavirus pandemic forced the government to impose restrictions on gathering.
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