Nigerian Breweries and Berger Paints Nigeria Plc have posted stronger first-quarter 2026 earnings, reinforcing expectations that corporate Nigeria is entering a more stable growth phase after years of foreign exchange volatility and inflationary pressure.
Speaking during a market review, investment research analyst Nathaniel Disu of Afrinvest said improved currency stability, stronger operational efficiency, and recovering demand are helping listed firms return to healthier profitability.
For Nigerian Breweries, profit after tax rose 25.6% in the first quarter of 2026, while revenue increased 7.7%. Disu attributed the growth to the company’s legacy brands, product expansion, and the resilient nature of consumer demand in the beverages segment.
He also noted that costs grew more slowly than revenue, indicating stronger management efficiency. According to him, the brewer’s ability to source roughly 45% of raw materials locally has reduced pressure from foreign exchange exposure, a major challenge for many Nigerian manufacturers in recent years.
Selling and distribution expenses rose 13%, which analysts linked to the company’s extensive nationwide logistics network and efforts to maintain product visibility across markets.
A key positive for investors was a 55% decline in net finance expenses. Disu said this reflects the fading impact of the heavy FX losses recorded across 2023 and 2024, alongside the company’s capital raising efforts. Nigerian Breweries previously completed a rights issue that injected over ₦600 billion, strengthening liquidity and reducing borrowing pressure.
He added that the brewer has now reached “full recovery,” with expectations that revenue could approach ₦2 trillion in 2026.
Potential catalysts for stronger sales this year include the FIFA World Cup, festive demand cycles, and heightened political activity ahead of Nigeria’s next general elections.
Berger Paints Recovery
Disu said Berger Paints continues to benefit from sustained demand in construction, real estate, and infrastructure development. He pointed to ongoing building activity in Lagos and increased federal budget allocations for infrastructure as supportive tailwinds.
The company also recorded a sharp 52% decline in selling and distribution expenses, which he described as evidence of stronger cost management.
Analysts say both earnings reports underline a broader trend in Nigeria’s equity market: firms with strong brands, efficient cost structures, and manageable FX exposure are now better positioned for growth.
Disu said the consumer goods sector has largely moved beyond the worst of the currency shock era, adding that companies such as Unilever Nigeria Plc and PZ Cussons Nigeria Plc are also expected to post improved results in 2026.
He emphasized that exchange-rate stability remains one of the most important gains from recent reforms.
“When the currency is stable, companies can plan better, budget better, and grow revenue more effectively,” he said.
