Nigerian Breweries posts N804bn revenue as tax, consumer pr

Nigerian Breweries Plc recorded N803.68 billion in revenue in the first half of 2026, reinforcing its recovery from recent financial pressures, although a sharp rise in tax expense limited the conversion of stronger operating performance into bottom-line earnings.

The brewer’s H1 revenue increased 8.88 per cent from N738.14 billion in the corresponding period of 2025, while profit before tax rose 18.21 per cent to N156.33 billion. Profit after tax, however, grew by a more modest 5.13 per cent to N92.96 billion, reflecting a substantially higher tax burden.

The company also recorded N164 billion in operating profit, up about eight per cent from N152 billion a year earlier, as improved gross margins, cost discipline and operational efficiency helped offset persistent cost pressures.

Revenue growth was achieved despite only 0.3 per cent growth in sales volume, indicating that pricing and revenue-management measures played a significant role in the topline performance.

The stronger operating result also came as selling, distribution and administrative expenses increased by about 20 per cent, making the improvement in operating profit particularly important for investors assessing the company’s ability to protect margins in a difficult consumer environment.

The major drag on earnings came from taxation. Nigerian Breweries’ tax expense increased to N63.37 billion from N43.83 billion in H1 2025, a 44.6 per cent increase, pushing its effective tax rate to about 40.5 per cent from 33.1 per cent.

As a result, the 18.2 per cent increase in pre-tax profit translated into only a 5.1 per cent rise in net profit.

The company said its improved performance reflected the resilience of the business and measures adopted to navigate Nigeria’s challenging operating environment.

Managing Director of Nigerian Breweries, Thibaut Boidin, said disciplined execution, cost optimisation and stronger partnerships across the value chain supported the half-year performance.

“Our first-half performance reflects the resilience of our business and the strength of the measures we have put in place to navigate a challenging environment,” he said.

Boidin said the ability to anticipate different scenarios and respond early had become increasingly important amid economic and geopolitical uncertainty, including the impact of the Middle East crisis.

He added that supplier partnerships and continued focus on cost efficiency had also contributed to the result.

Another significant balance-sheet milestone was the company’s return of retained earnings to positive territory, strengthening its financial position and creating greater capacity to support future operations.

The result comes as Nigeria’s consumer-goods manufacturers continue to contend with elevated energy, logistics and raw-material costs, while weaker household purchasing power places limits on how far companies can raise prices without affecting volumes.

For investors, Nigerian Breweries’ H1 performance presents a mixed but improving picture. Revenue and operating profit are growing, while the company has restored positive retained earnings, but the widening tax burden and relatively weak volume growth remain important constraints on earnings expansion.

The contrast between the company’s 18.2 per cent pre-tax profit growth and 5.1 per cent net-profit growth also highlights the importance of monitoring tax costs alongside sales and operating margins.

Nigerian Breweries, which is marking 80 years of operations in Nigeria, said it would continue to focus on operational resilience, sustainable growth and long-term value creation for shareholders and other stakeholders.