Nigerian Breweries Pre-Tax Profit Surges to ₦156.3 Billion as Deleveraging Slashes Finance Costs

Nigerian Breweries Plc reported an 18.2% surge in pre-tax profit to ₦156.3 billion for the first half of 2026, as top-line revenue expansion and a massive reduction in borrowing costs offset higher operating overheads.

Gross revenue for the six months through June 30 grew 8.9% year-on-year to ₦803.7 billion, driven by sustained demand across its premium beer portfolio and malt category. Cost of sales expanded at a slower rate of 5.1%, allowing gross margins to widen by 210 basis points to 44.2%.

Supported by a stronger cash flow position and improved earnings, the Heineken N.V. subsidiary fully extinguished its outstanding loans and borrowings during the period, driving a 61.1% drop in net finance costs to ₦7.65 billion. Net profit for H1 2026 reached ₦93.0 billion, with basic Earnings Per Share (EPS) rising 5.3% to ₦3.00.

Operating Costs Rise Amid Channel Expansion

Operating profit edged up 8.0% year-on-year to ₦164.0 billion, yielding a stable operating margin of 20.4%. Operating expenses grew 20.2% to ₦191.6 billion, driven by:

• Selling & Distribution: Increased 22.1% year-on-year, reflecting route-to-market investments and elevated haulage and logistics expenses.

• Administrative Expenses: Advanced 11.1% year-on-year to support ongoing operational scaling across its nationwide brewery network.

The cost pressures were mitigated below the operating line by a 194.8% surge in finance income on cash deposits, alongside a 50.4% drop in finance costs due to debt repayment.

Second-Quarter Standalone Slowdown

While overall half-year earnings expanded, standalone second-quarter performance pointed to sequential moderation in bottom-line profitability due to higher quarterly tax charges.