H1: Nigerian Breweries Strengthens Financial Position with Improved Cash Generation

Nigerian Breweries Plc has announced a strengthened financial position for the first half of 2026, marking a debt-free status with enhanced cash generation, positive retained earnings, and a robust balance sheet. The company's Finance Director, Maria Karaseva, disclosed these results during an investor call presentation.

Karaseva revealed that the firm reported net revenue surpassing N1 trillion and maintained an asset base of approximately N1 trillion over the past six months. She highlighted a substantial 264 percent increase in cash performance, resulting in N73 billion in net free operating cash flow compared to the same period in 2025. This financial improvement facilitated the full repayment of outstanding loans, concluding the reporting period with zero borrowings.

Karaseva credited the company's productivity program for playing a crucial role in the improved performance, contributing N76 billion in productivity gains and expanding the gross profit margin by two percentage points. These operational enhancements helped mitigate the impact of inflation and the Middle East crisis, leading to an 18 percent year-on-year increase in profit before tax.

The Finance Director emphasized that the company's financial success stems from disciplined financial management, robust working capital management, and sustained productivity initiatives across the business. She explained that these initiatives generated substantial value, enabling the company to absorb inflationary pressures while bolstering profitability and liquidity.

"Our focus throughout the period was to strengthen cash generation and build a more resilient financial position," Karaseva stated. "By improving our cash conversion, managing working capital more efficiently, and translating productivity gains into cash, we generated N73 billion in net free operating cash flow, fully repaid our loans, and returned retained earnings to positive territory. This marks a significant milestone in our recovery journey."

Looking ahead, Karaseva affirmed the company's dedication to maintaining disciplined cash and cost management while pursuing volume and revenue growth.