April 24, 2026/InvestmentOne Report
Net revenue for Q1:2026 reached NGN413.02bn, representing a 7.65% year-on-year increase over the NGN383.64bn recorded in Q1:2025. The Q1:2026 outturn therefore signals a normalisation of the top-line growth rate, as the base effect of the 2024 devaluation cycle fades. Cost of sales rose by 7.41% YoY to NGN233.16bn in Q1:2026 from NGN217.07bn in Q1:2025, in line with top-line growth.
Importantly, the cost growth rate remained marginally below revenue expansion, enabling a slight improvement in gross margin to 43.54% from 43.42% in Q1:2025. This represents a continuation of the positive margin trajectory seen since Q1:2024, when gross margin stood at just 36.06%, and is consistent with management’s ongoing efforts to optimise procurement and local sourcing. Gross profit consequently grew 7.97% YoY to NGN179.85bn, compared to NGN166.57bn in Q1:2025.
Nigerian Breweries’ vision for 2026 acknowledges persistent market volatility, constrained disposable income levels, and high-cost environment, while targeting sustained cash positivity and disciplined cost management to defend margins achieved in 2025. The company expects modest volume growth in the low single digits, driven primarily by returnable packaging availability improvements and continued premiumization trends supporting revenue per hectolitre expansion.
The company targets maintaining net debt below NGN 100bn throughout 2026, prioritizing balance sheet strength and financial flexibility over aggressive growth investments. We rate Nigerian Breweries Plc a STRONG BUY, reflecting our conviction in the company’s successful operational turnaround, robust balance sheet position following the rights issue recapitalization, and attractive strategic positioning as Nigeria’s leading total beverage company.
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