International Breweries Plc reported a profit after tax of N38.3 billion for the six months ended June 30, 2026, a 7.2 percent decline from N41.3 billion in the same period of 2025, as a sharp jump in finance costs offset otherwise stronger operating performance, according to the company’s unaudited half-year financial statements.
Revenue was largely flat at N342.1 billion, from N341.0 billion a year earlier, as steady demand across the brewer’s beer and non-alcoholic beverage portfolio held sales in place despite a tougher consumer spending environment.
Cost of sales declined 8.5 percent to N200.8 billion, from N219.4 billion, lifting gross profit by 16.2 percent to N141.3 billion, from N121.6 billion, on lower materials and production-related costs that strengthened margins even as topline growth stalled.
Administrative, marketing and distribution expenses rose 19 percent to N70.5 billion, from N59.3 billion, on higher advertising, logistics and business running costs. Other expenses narrowed sharply to N676.4 million, from N6.2 billion, as unrealised foreign exchange gains of N7.0 billion cushioned a wider realised exchange loss. Operating profit climbed 24.7 percent to N69.9 billion, from N56.1 billion.
Finance income rose 27.6 percent to N12.0 billion, from N9.4 billion, but finance costs grew faster, up 80.7 percent to N7.0 billion, from N3.9 billion, driven by higher interest expense on lease liabilities.
Profit before tax still rose 21.6 percent to N74.8 billion, from N61.5 billion, but a steep 80.2 percent jump in income tax expense, to N36.5 billion from N20.2 billion, dragged profit after tax down to N38.3 billion. Basic and diluted earnings per share settled at N0.23, from N0.25.
On the balance sheet, total assets grew 7.2 percent to N792.7 billion as at June 2026, from N706.7 billion a year earlier, driven by a 13 percent rise in property, plant, and equipment to N360.7 billion and a 98 percent surge in cash and cash equivalents to N171.1 billion, from N86.6 billion.
Total liabilities increased 17 percent to N254.5 billion, from N216.5 billion, as current lease liabilities jumped to N18.2 billion, from N10.1 billion, and trade and other payables edged up to N189.7 billion, from N178.7 billion. Total equity strengthened 9 percent to N538.1 billion, from N490.8 billion, as accumulated retained losses narrowed further to N152.7 billion, from N200.7 billion, continuing the brewer’s recovery from years of losses.
On cash flow, the company generated N76.5 billion from operations for the half, up sharply from N8.2 billion a year earlier, with net cash inflow from operating activities settling at N69.5 billion, compared with N5.8 billion previously.
Capital expenditure remained elevated at N56.2 billion, reflecting continued investment in production capacity, though slightly below the N58.9 billion spent in the same period last year. Cash outflow from financing activities was broadly stable at N10.5 billion, mainly on lease payments.
International Breweries’ shares are currently priced at N11.80, giving the brewer a market capitalisation of N1.99 trillion, as the stock has shed 15.71 percent year-to-date.