Nigeria’s listed beverage manufacturers entered 2026 on a stronger footing than a year earlier, with three of the four companies reporting higher profits, although the overall pace of growth remained constrained by consumer pressures and rising costs.

An analysis of the unaudited condensed interim financial statements of Nigerian Breweries Plc, International Breweries Plc, Guinness Nigeria Plc and Champion Breweries Plc for the three months ended March 31, 2026, shows that the manufacturers generated a combined N86.95bn profit after tax, compared with N81.84bn recorded in the corresponding period of 2025.

The result represents a 6.2 per cent year-on-year increase, highlighting the ability of Nigeria’s brewing sector to maintain profitability despite a challenging economic environment marked by rising living costs, pressure on household purchasing power and higher business expenses.

The performance came as Africa’s most populous nation continued to navigate the effects of inflation and rising input costs. Headline inflation stood at 15.38 per cent in March 2026, up from 15.06 per cent in February, according to data from the National Bureau of Statistics.

The increase was driven by higher food, energy and transportation costs.

Although inflation moderated significantly from the levels recorded last year, when it reached 24.23 per cent in March 2025, the impact of previous price increases continued to affect consumer spending patterns and business operations.

The industry’s higher earnings were largely due to stronger performances by Nigerian Breweries Plc and Guinness Nigeria Plc, while Champion Breweries Plc also recorded growth. However, International Breweries Plc reported a fall in profit after tax as tax expenses reduced its final earnings despite improved pre-tax performance.

The four companies operate in Nigeria’s formal beverage market, producing a range of alcoholic and non-alcoholic drinks, including lager beer, stout, malt beverages and other ready-to-drink products. Their quarterly results provide insight into how major consumer goods companies are adapting to changing purchasing behaviour and cost pressures.

The largest contributor to the sector’s first-quarter earnings was Nigerian Breweries Plc, the country’s largest brewing company and a subsidiary of global brewer Heineken. The company produces Star, Heineken, Gulder, Maltina, Amstel Malta and Desperados.

Nigerian Breweries reported a profit after tax of N55.95bn in the first quarter of 2026, compared with N44.55bn in the same period of 2025. The result represents an increase of N11.39bn, or 25.6 per cent year on year.

The company’s earnings growth was supported by stronger revenue and improved profitability before tax.

Nigeria’s oldest beverage company, Guinness Nigeria Plc, the maker of Malta Guinness, Orijin and Smirnoff Ice, recorded the fastest percentage profit growth among the larger listed brewers.

The company reported a profit after tax of N10.39bn in the first quarter of 2026, compared with N7.03bn a year earlier. That represents an increase of N3.37bn, or approximately 48 per cent year on year.

Its profit before tax also improved, rising to N15.75bn from N10.28bn, reflecting stronger profitability during the period.

International Breweries Plc, the producer of Trophy, Trophy Black, Budweiser, Hero, Eagle Lager and Castle Lite, presented a different picture of the sector. The brewer improved its underlying operating performance but saw its final profit decline after a significant increase in taxation.

The company recorded a profit after tax of N19.62bn in the first quarter of 2026, compared with N29.38bn in the same period of 2025. The decline represents a reduction of N9.76bn, or 33.3 per cent year on year. However, the drop in net profit did not reflect weaker business performance.

International Breweries’ profit before tax increased to N40.31bn from N35.07bn, showing improved profitability before tax obligations. The major pressure came from income tax expense, which increased sharply to N20.69bn from N5.69bn in the previous year.

The result demonstrates how tax obligations and other non-operating factors can significantly affect the final earnings available to shareholders, even when companies report stronger operational performance.

Smaller listed brewer Champion Breweries Plc also recorded growth during the quarter. The Uyo-based company, which produces beer and malt beverages, reported a profit after tax of N984.58m for the first quarter of 2026. This compares with N881.47m recorded in the same period of 2025. The company increased profit by N103.11m, representing 11.7 per cent year-on-year growth.