Nigerian Breweries Plc just released its third quarter financial statement that showed the brewer recorded earnings growth, relatively stable macroeconomic conditions.
For the first nine month through September 2026, Nigerian Breweries profit after tax (PAT) spiked by 33.43 percent to N114.09 billion from N85.50 billion as at September 2025.
Revenue was up 5.70 percent to N1.10 billion in September 2026 from N1.04 billion as at September 2025.
The relative stability in the foreign exchange market that validates the unification of the foreign exchange market has erased foreign exchange losses and helped ease pressure imported inflation as the company imports most of its raw materials.
Also, the cut in the monetary policy rate by the central bank is a boon for brewers as interest expenses in their books have reduced.
The Apex Bank has cut the benchmark interest rate by 350 basis points to 23 per cent from 26.5 per cent, as easing inflation and improved foreign exchange conditions created room for the biggest rate adjustment in the current monetary policy cycle.
Nigeria’s annual headline inflation rate fell to 14.63 percent in September 2026, down from 15.39 percent in August 2026, according to the National Bureau of Statistics.
The yield on Nigeria 10 year bond yield held steady at 16.90 percent on October 26, 2026. Over the past month, the yield has edged up by 0.93 points and is 1.32 points higher than a year ago, according to over-the-counter interbank yield quotes for this government bond maturity.
Nigeria Breweries finance costs reduced by 77.71 percent to N7.49 billion in the period under review from N33.65 billion as at September 2025.
Cost of sales were down 1.02 percent to N624.75 billion in September 2026 from N631.23 billion as at September 2025.
The downside risk to future earnings is the weak consumer purchasing power brought on by rising transportation costs, rising unemployment, and spiraling utility bills.
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