Nigerian Breweries Plc has reported a strong financial performance for the first half of 2026, posting a group revenue of N804 billion and returning its retained earnings to a positive position, a milestone that underscores the brewer’s continued recovery and stronger financial health.

The company’s unaudited results for the six months ended June 30, 2026, showed that revenue rose by nine per cent from N738 billion recorded in the corresponding period of 2025, driven by strategic revenue management initiatives, sustained investment in key brands and disciplined execution across its value chain.

The brewer also recorded improved profitability during the period despite operating in a challenging macroeconomic environment marked by persistent volatility.

Operating profit increased by eight per cent to N164 billion from N152 billion in the first half of 2025, even as selling, distribution and administrative expenses rose by 20 per cent.

A major contributor to the improved earnings was the sharp reduction in finance costs. Nigerian Breweries reported a 61 per cent decline in net finance expenses, which helped lift profit before tax by 18 per cent during the review period.

However, the company noted that the implementation of the new tax rates moderated the growth in net earnings, with profit after tax rising by five per cent to N193 billion from N161 billion achieved in the corresponding period of last year.

The restoration of retained earnings to a positive position represents one of the company’s biggest achievements during the half-year, reflecting the success of its business recovery programme and strengthening its balance sheet after previous periods of financial pressure.

Commenting on the results, Company Secretary and Legal Director of Nigerian Breweries Plc, Uaboi Agbebaku, said the performance demonstrates the company’s resilience despite the difficult operating environment.

He attributed the revenue growth to effective revenue management actions and strategic initiatives implemented across the business.

According to him, sustained investment in strategic brands, focused execution across the value chain and the continued strong performance of the company’s premium brands and malt category supported the revenue expansion.

Agbebaku said the company’s gross profit margin expanded by two percentage points during the period, while operating activities continued to improve.

He explained that the 18 per cent growth in profit before tax was largely supported by the substantial reduction in finance expenses, although the impact of the new tax rates limited growth in profit after tax to five per cent.

The company also highlighted further improvements in its financial position, stating that it has enhanced liquidity and significantly reduced financing pressure by maintaining a zero-borrowing position.

According to Agbebaku, the stronger cash position provides Nigerian Breweries with greater flexibility to respond to changing market conditions while supporting the execution of its strategic priorities.

He added that the return of retained earnings to positive territory further demonstrates the effectiveness of management’s recovery initiatives and positions the company for sustainable long-term value creation.

The latest performance signals that Nigerian Breweries is steadily consolidating its recovery through stronger operational efficiency, prudent financial management and disciplined capital allocation, while remaining focused on delivering sustainable returns to shareholders despite Nigeria’s challenging economic environment.

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