Nigerian Breweries Plc has fully eliminated its accumulated losses, with Group retained earnings turning positive at N34.79 billion as of September 30, 2026, from an accumulated deficit of N72.17 billion at the end of December 2025.
An analysis by Nairametrics Research of the brewer’s unaudited financial statements for the nine months ended September 30, 2026, shows that the turnaround was supported by sustained profitability, lower finance costs and improved cash generation.
The parent company’s retained earnings also returned to positive territory at N37.01 billion from an accumulated deficit of N77.09 billion, a significant development because dividend-paying capacity depends particularly on the distributable profits of the legal entity declaring the dividend.
However, Nigerian Breweries has not announced a new dividend, and any future distribution will depend on sustained profitability, sufficient distributable reserves and the necessary corporate approvals.
Profit recovery eliminates accumulated losses
Nigerian Breweries began 2026 with Group accumulated losses of N72.17 billion after a difficult period marked by elevated finance costs and pressure on profitability.
By June, the brewer had reversed the position, recording positive Group retained earnings of N13.65 billion, supported by a first-half profit after tax of N92.95 billion.
The recovery continued in the third quarter, with an additional N21.14 billion in profit after tax lifting nine-month earnings to N114.10 billion.
- Group retained earnings increased to N34.79 billion at the end of September, an improvement of N106.96 billion from the beginning of the year.
- Parent-company retained earnings moved from a N77.09 billion accumulated deficit at the end of 2025 to a positive N37.01 billion.
- Revenue increased by 5.4% to N1.10 trillion, while gross profit rose by 15.1% to N477.90 billion as cost of sales declined marginally to N624.76 billion.
- Profit before tax increased by 32.6% to N171.68 billion, while profit after tax rose by 33.4% to N114.10 billion.
The recovery was also supported by lower financing expenses, with finance costs declining by 61.3% to N11.20 billion from N28.90 billion in the corresponding period of 2025.
The improvement in profitability was sufficient to absorb previous accumulated losses and rebuild positive retained earnings at both Group and parent-company levels.
Nigerian Breweries last paid dividends for the 2022 financial year
The return to positive retained earnings comes after three consecutive financial years without dividend distributions to shareholders.
Nigerian Breweries last declared dividends for the 2022 financial year, when shareholders received a total of N1.43 per share, comprising an interim dividend of 40 kobo and a final dividend of N1.03 per share.
The total payout amounted to approximately N13.87 billion, with the final dividend approved by shareholders in April 2023.
- The company made no dividend distributions for the 2023, 2024 and 2025 financial years following the deterioration in its financial performance and accumulated losses.
- Although profitability improved in 2025, Group retained earnings remained negative at N72.17 billion at year-end, while the parent company had an accumulated deficit of N77.09 billion.
- Nigerian Breweries did not declare a new dividend during the nine months ended September 2026, according to its statement of changes in equity.
- The N340.56 million paid in dividends during the period related to existing dividend obligations rather than a newly declared distribution, while dividend payable declined to N2.44 billion from N2.79 billion.
The elimination of accumulated deficits therefore strengthens the company’s potential capacity to resume distributions, although any dividend will still depend on sustained profitability, sufficient distributable reserves and the necessary corporate approvals.
Debt repayment and stronger cash flow support dividend prospects
Nigerian Breweries’ improvement in retained earnings has coincided with a significant strengthening of its balance sheet, particularly through the elimination of outstanding interest-bearing borrowings.
Loans and borrowings declined from N59.71 billion at the end of December 2025 to zero as of September 2026.
The improvement was also reflected in stronger cash generation and higher shareholders’ funds.
- Net cash from operating activities increased by 145.2% to N150.03 billion from N61.18 billion in the corresponding period of 2025.
- Cash and cash equivalents rose by 26.4% to N77.28 billion, while shareholders’ funds increased to N667.22 billion from N560.22 billion.
- Nigerian Breweries spent N61.02 billion on property, plant and equipment during the period, while outstanding capital expenditure commitments stood at N74.7 billion.
- Selling and distribution expenses increased by 24.3% to N240.94 billion, indicating that operating and investment requirements could still influence cash available for future distributions.
For shareholders who have gone three years without dividends, the recovery raises hopes that Nigerian Breweries could return to paying dividends for the 2026 financial year.
