Nigerian Breweries Plc says it strengthened its financial position in the first half of 2026, becoming debt-free after generating N73 billion in net free operating cash flow.
The company also returned its retained earnings to positive territory and maintained an asset base of approximately N1 trillion during the six-month period.
Maria Karaseva, finance director of Nigerian Breweries, spoke during the company’s investor call on Friday, August 28.
Karaseva said the company recorded net revenue of more than N1 trillion, reflecting continued recovery and improved financial resilience.
She said net free operating cash flow rose by 264 percent compared with the corresponding period in 2025, enabling the company to fully repay its outstanding loans and close the reporting period with zero borrowings.
The finance director attributed the improved performance partly to the company’s productivity programme, which delivered N76 billion in gains during the period.
According to her, the gains helped expand the company’s gross profit margin by two percentage points and cushion the impact of inflation and the Middle East crisis.
The company also recorded an 18 percent year-on-year increase in profit before tax.
Karaseva said the results reflected the impact of stronger financial discipline, improved working capital management and sustained productivity initiatives across the business.
“Our focus throughout the period was to strengthen cash generation and build a more resilient financial position,” she said.
“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 represents a significant milestone in our recovery journey.”
Looking ahead, Karaseva said Nigerian Breweries would sustain disciplined cash and cost management while pursuing volume and revenue growth.
She said the company would focus on reducing foreign-exchange exposure, improving productivity and innovation, and mitigating inflation through stronger operational performance.
“Our productivity programme delivered N76 billion in gains, which helped offset the impact of Middle East-related inflation in Nigeria and improved our gross profit margin by two percentage points,” she added.
“More importantly, those gains translated into stronger cash flow, giving us the capacity to eliminate our borrowings and significantly improve the health of our balance sheet.”
