International Breweries Plc reported a profit after tax of N19.6 billion for the first quarter ended March 31, 2026, reflecting a 33 percent decline from N29.4 billion recorded in the same period of 2025, as higher tax charges and rising operating costs weighed on earnings.
Profit before tax rose to N40.3 billion from N35.1 billion in the prior year, supported by revenue growth and improved gross margins, but a sharp increase in income tax expense to N20.7 billion curtailed bottom-line performance.
Revenue increased to N178.7 billion from N173.6 billion, driven by sustained demand across its beer and non-alcoholic beverage portfolio.
Cost of sales declined to N103.6 billion from N114.0 billion, lifting gross profit to N75.1 billion compared to N59.6 billion a year earlier.
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The improvement in cost efficiency reflects lower materials and production-related expenses relative to the previous year, strengthening margins despite inflationary pressures.
Administrative, marketing, and distribution expenses increased to N35.4 billion from N27.5 billion, reflecting higher spending on advertising, logistics, and business operations.
Total operating profit stood at N39.7 billion, up from N31.5 billion in the corresponding period of 2025.
Finance income declined to N4.2 billion from N5.5 billion, while finance costs rose to N3.6 billion from N2.0 billion, resulting in a lower net finance income of N641.2 million compared to N3.5 billion previously.
The company recorded a net cash inflow of N28.7 billion from operating activities, reversing an outflow of N11.9 billion in the same period last year.
Capital expenditure remained elevated at N20.3 billion, reflecting continued investment in production capacity and infrastructure.
Cash and cash equivalents rose to N161.7 billion at the end of March 2026, from N155.4 billion at the start of the year.
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Total assets increased to N784.9 billion from N742 billion reported in the same period of 2024, driven by an increase in properties and cash holdings.
Equity improved to N519.4 billion from N478 billion, supported by retained earnings, while total liabilities rose to N265.4 billion.
Retained losses narrowed to N171.4 billion from N191.0 billion, reflecting the quarter’s profit contribution.
Earnings per share fell to 12 kobo from 17 kobo in the prior year, mirroring the decline in profit after tax.
Read also: International Breweries returns to profit after 7-year loss streak
At the close of trading on Friday, April 24, International Breweries’ stock traded at N14 per share, down from N14.5 per share as of January 2nd, reflecting a 3.4 percent decline.
This currently puts the company’s stock as the 16th most valuable stock on the NGX with a market capitalisation of N2.36 trillion, which is about 1.62 percent of the Nigerian Stock Exchange equity market.