November 4, 2026/CSL Report
Financial Highlights:
- Revenue: +5.4% y/y to ₦1.1tn
- Cost of Sales: -2.7% y/y to ₦563.0bn
- EBITDA: +11.6% y/y to ₦238.9bn
- Operating Profit: +9.8% y/y to ₦179.2bn
- Profit before Tax: +32.6% y/y to ₦171.7bn
Stock Rating: Buy
Target Price: ₦88.50 per share
Nigerian Breweries Plc reported a modest top-line performance in its 9M 2026 results, with Revenue rising by 5.4% year-on-year (y/y) to ₦1,102.7 billion, up from ₦1,046.4 billion in 9M 2025. The growth was likely driven by price and product mix rather than volume, particularly as the company raised prices on select SKUs (branded products) effective March 20, 2026. Our view is supported by H1 disclosures, which showed a
marginal 0.3% increase in sales volume despite Revenue advancing by 8.9%.
On a sequential basis, Q3 2026 Revenue declined by 23.5% quarter-on-quarter (q/q) to ₦299.0 billion from ₦390.7 billion in Q2 2026, likely reflecting lower volumes in a seasonally weaker, non-festive quarter. Q3 Revenue was also 3.0% lower y/y than the ₦308.2 billion recorded in Q3 2025, despite the price increase, which suggests underlying volumes remained soft.
Meanwhile, Cost of Sales (COS, excluding depreciation) declined by 2.7% y/y to ₦563.0 billion from ₦578.9 billion in 9M 2025, despite the growth in Revenue. The decline was likely supported by the prevailing favourable exchange rate environment, which made imported inputs relatively cheaper compared to the base period.
The company’s growing use of the local supply chain for sorghum as a barley substitute likely added to the savings. Consequently, Gross Profit (before depreciation) grew by 15.4% y/y to ₦539.7 billion from ₦467.5 billion, and Gross Margin expanded by 4.3ppt to 48.9% from 44.7%. In Q3, COS fell by 20.7% q/q to ₦155.1 billion, a slower decline than the fall in Revenue, so Gross Profit declined by 26.2% q/q to ₦143.9 billion and Gross Margin edged down by 1.8ppt to 48.1%.
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