Only International Breweries Plc and HBM Nigeria Plc are debt free profitable companies on the NGX, which gives them more flexibility than those that have lots of financial obligation, according to MoneyCentral Intelligence.
Lower leverage ratio (lower debts) makes these two firms immune from macroeconomic shocks.
While the central bank is reducing interest rates as inflation is gradually receding, firms with debts will still pay interest on borrowings. Perhaps more interesting is that the Nigeria macroeconomic environment is unpredictable and so challenging that borrowing costs may be rising tomorrow.
Debt-free profitable companies can tap the debt market to raise capital effortlessly, giving owners the leeway for potential capital for growth or other uses.
Of course, the stability of cash flows of a firm determines the extent it can easily embark on more borrowings as those with a stable and strong cash are in a better position to take on debt.
As a result of elevated capital expenditure, HBM Nigeria dipped by 79.69 percent to N37.29 billion as at September 2026, from N182.58 billion in 2025. It incurred N235.02 billion on the acquisition of property plant and equipment (PPE), which is higher than 2025’s N53.17 billion.
The cement maker posted earnings before interest amortization, and depreciation (EBITDA) of N416.23 billion in the period under review from N313.29 billion.
HBM Nigeria has returned 160.20 year to date (YTD), outperforming the NGX Industrial Index and All-Share Index YTD returns of 114.9 percent and 62.14 percent respectively.
International Breweries deleveraging exercise has paid off. The consumer goods giant has a free cash flow of N29.30 billion as at September 2026, which is higher than the N20.96 billion deficit recorded in 2025.
It recorded capital expenditure of N85.13 billion in September 2026 from N55.06 billion as at September 2025.
EBITDA stood at N139.23 billion as at September 2026, which is 20 percent higher than 2025’s N116.05 billion.
International Breweries shares have lost -35.16 percent since the start of the year, underperforming the NGXASI index 62.14 percent.
 Follow the MoneyCentral Nigeria channel on WhatsApp: Click here!
