August 11, 2026/InvestmentOne Report
Net revenue for H1:2026 rose to NGN803.68bn, representing an 8.88% year-on-year increase over NGN738.14bn recorded in H1:2025. The moderation in revenue growth reflects the fading impact of the pricing actions implemented during the 2024 inflation and FX adjustment cycle, with revenue expansion increasingly supported by underlying demand and product mix improvements.
Meanwhile, cost of sales increased by 5.07% YoY to NGN448.82bn from NGN427.14bn, growing at a slower pace than revenue. Consequently, gross margin improved to 44.16% from 42.13%, while gross profit expanded by 14.10% YoY to NGN354.86bn.
Going forward, we expect the organization to continue in its continued NGN1trn in revenue as price adjustment and demand needs have stabilized across its premium brands. Furthermore, the naira stability and continued efforts to eliminate debt continue to assist in these efforts. 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.
Catalysts supporting our positive thesis include: (1) potential dividend resumption in H2:2026 or early 2027, which would trigger re-rating from income-focused investors; (2) continued market share gains in premium beer segment, driving favourable product mix evolution; (3) operating margin expansion from productivity initiatives and local sourcing progress; (4) potential FX stability providing visibility on earnings sustainability; and (5) strategic M&A opportunities in adjacent beverage categories leveraging the company’s distribution strength.
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