Nigerian Breweries Plc has been through difficult periods in its recent history.
After recording heavy losses in 2023 and 2024, the brewer returned to profit in 2025. Now, its H1 2026 results suggest that the recovery is continuing.
But the important question now is no longer simply whether Nigerian Breweries is recovering. It is whether the recovery can be sustained, dividends can return, and stronger shareholder returns can restore investor confidence and support the share price.
Those are the key things investors should consider before buying Nigerian Breweries stock.
Nigerian Breweries is Nigeria’s largest brewing company, with brands including Star, Heineken, Maltina, Amstel Malta, Gulder, Life, Fayrouz and Legend. Its products are sold across the country through a large distribution network
The company has been relying on higher prices, premium products, stronger brands and better execution to deal with rising production costs and pressure on consumers, and the strategy appears to be working.
One reason is pricing. When the cost of producing and distributing its products rises, Nigerian Breweries can increase prices to protect its margins. It increased prices in 2023, followed by further increases in February and March 2024, and again in March 2026.
But pricing alone is not enough, particularly when consumers are already under pressure.
This is where stronger brands and premium products become important.
The company is also working to improve productivity and supply chain efficiency. In simple terms, it is trying to get more out of the money it spends producing and distributing its products. If it can keep costs from rising as quickly as prices and sales, more of each naira earned can become profit.
The result has been a significant improvement in business. Revenue grew from N437.3 billion in 2021 to N1.47 trillion in 2025, while the company moved from making profits in 2021 and 2022 to heavy losses in 2023 and 2024, before returning to a N99.1 billion profit in 2025.
The question now is whether this recovery can continue.
The H1 2026 results suggest Nigerian Breweries’ recovery is becoming more established, rather than being a one-off return to profit.
The company is making more profit from the sales it already makes. Revenue increased 8.9%, but gross profit rose 14.1%. This means its production costs are taking up a smaller share of sales, helping gross margin improve from 42.1% to 44.2%.
That improvement is also reaching the operating level. The brewer made N164 billion in operating profit in six months, compared with N151.9 billion a year earlier.
The improving foreign exchange environment is another positive. Nigerian Breweries relies on imported materials, including raw materials, spare parts and machinery.
The company is also benefiting from a much lower financing burden. After strengthening its balance sheet through the 2024 rights issue, finance costs have fallen sharply.
But one headwind is still overhead expenses. The cost of selling the products is still rising quickly.
That is why the improvement in operating profit has not translated into an equally strong increase in shareholder earnings.
So, the recovery is real, but the next stage is harder. Now it needs to prove that it can keep its stronger margins, control distribution costs, and turn the recovery into sustained growth in earnings per share.
If Nigerian Breweries can maintain its H1 performance through the rest of the year, 2026 could mark an important step forward in its recovery.
The company earned N3.00 per share in H1 2026. Annualized, that comes to about N6.00 per share, compared with N3.19 for the full year in 2025. That would represent an 88% increase in EPS.
That would be a significant improvement, but investors should not assume the full H1 run rate will automatically continue.
The second half will still depend on sales growth, pricing, input costs, and how well the company controls distribution and other operating expenses.
The balance sheet, however, gives investors another reason to be encouraged. Nigerian Breweries has moved from a company carrying substantial losses to one with N13.6 billion in positive retained earnings at June 2026, compared with an accumulated deficit of N72.2 billion at the end of 2025.
This is particularly important for shareholders because Nigerian Breweries has not paid a dividend since 2022.
The company did not declare a dividend for 2025 because retained earnings were still negative, with management saying it needed to rebuild the balance sheet
before resuming distributions as soon as it is sustainable to do so.
Now, for the first time since the losses accumulated, retained earnings are back in positive territory.
That does not mean a dividend is guaranteed. But it removes one of the major obstacles that prevented the company from paying one.
For investors, this makes the next few quarters especially important. If Nigerian Breweries can sustain its earnings recovery, keep debt at bay and continue rebuilding retained earnings, the company could eventually move from simply recovering its business to restoring shareholder returns.
The stock closed yesterday at N69.50, down 7.7% YTD, after gaining 135% in 2025.
At its current price, investors are paying about 20 times trailing earnings. That looks expensive, but annualizing H1 2026 EPS of N3.00 gives about N6.00, putting the stock at roughly 11.6 times forward earnings.
The valuation therefore looks more reasonable if the H1 earnings momentum continues, but investors should remember that annualizing six months assumes the second half will be equally strong.
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