International Breweries Plc recorded a 21.86% increase in pre-tax profit to N90.44 billion for the nine months ended September 2026, but a sharp increase in income tax expenses reduced profit after tax by 5.74% to N54.51 billion.
The company’s unaudited nine-month 2026 financial results filed with the Nigerian Exchange (NGX) on Monday, October 26, 2026 showed revenue increasing marginally by 2.12% to N482.61 billion from N472.57 billion in the corresponding period of 2025.
Despite improved operating profitability, earnings per share declined to 32 kobo from 34 kobo, reflecting the impact of higher taxation on shareholders’ earnings.
International Breweries recorded stronger gross profitability during the nine-month period, supported by lower production costs despite modest revenue growth.
However, administrative, marketing and distribution expenses increased by 26.13% to N116.16 billion, with advertising, promotion and distribution costs rising by 36.68%.
The improvement in operating profit indicates that cost savings outweighed the pressure from rising selling expenses, even as revenue growth remained relatively weak.
The company’s improved operating performance was supported by stronger net finance income, which increased by approximately 33% to N9.58 billion.
Cash generated from operations increased to N121.10 billion from N38.42 billion, while net operating cash flow reached N114.43 billion.
Capital expenditure stood at N85.13 billion, broadly in line with the previous year, while the company reported no outstanding bank loans or overdrafts as of September 30, 2026.
International Breweries’ cash and cash equivalents declined by 33.27% to N103.74 billion as of September 2026, compared with N155.45 billion at the end of December 2025.
The decline followed significant financing outflows, including the company’s N84 billion return of capital to shareholders.
With their reported share counts unchanged and combined substantial holdings remaining at 97.42%, the changes appear to reflect reclassification rather than additional share purchases.
International Breweries’ improving profitability has not fully translated into higher earnings per share or ordinary dividend payments, partly because of accumulated losses from previous years.
Nairametrics previously reported that the company had accumulated losses of N191.03 billion at the end of 2025 and proposed a share capital reduction to restore distributable reserves.
For investors, the results present a contrast between improving operating margins, stronger cash generation and the absence of bank debt, against relatively flat revenue, rising selling expenses and a higher tax burden.
The company’s fourth-quarter tax expense and progress on its proposed capital reduction will remain important factors in determining whether improved pre-tax profitability translates into stronger returns for shareholders.
