Beta Glass’ 9M pre-tax profit falls 6.4% to N37.64 billion as finance costs surge 45%

Beta Glass Plc recorded a 6.39% decline in pre-tax profit to N37.64 billion for the nine months ended September 30, 2026, compared with N40.32 billion in the corresponding period of 2025, as higher finance costs and foreign exchange losses offset growth in operating profit.

According to the company’s unaudited third-quarter financial statements filed with the Nigerian Exchange (NGX), revenue increased by 4.98% to N120.08 billion from N114.38 billion.

Profit after tax declined by 8.44% to N24.93 billion from N27.22 billion, while earnings per share fell to N41.55 from N45.38, despite an improvement in third-quarter earnings.

Beta Glass Finance Costs jump 45%:

Beta Glass recorded a 1.23% increase in operating profit to N39.25 billion, but higher financing expenses and currency losses weighed on pre-tax earnings.

• Finance costs rose by 44.69% to N8.93 billion, while finance income increased by 14.26% to N8.56 billion, resulting in a net finance expense of N373.56 million compared with net finance income of N1.32 billion a year earlier.
• Interest expense increased to N8.85 billion from N5.29 billion, including approximately N8.57 billion in interest on term loans.
• Interest income from related-party borrowings contributed N8.23 billion to the company’s finance income.
• Foreign exchange movements resulted in a N1.24 billion loss, compared with a N222.15 million gain in the corresponding period of 2025.
• Gross profit increased by 3.25% to N43.25 billion, although gross margin narrowed to 36.02% from 36.63%.
• Cost of sales increased by 5.99%, outpacing revenue growth, while depreciation rose by approximately 66.7% to N7.93 billion.

Factory salaries increased by 26.65% to N4.59 billion, although fuel, gas and electricity costs declined by 5.31% to N23.22 billion. Other income also fell by 38.82% to N1.98 billion, adding to the pressure on pre-tax profitability.

Beta Glass Q3 profit rebounds:

Beta Glass recorded stronger earnings in the third quarter, with pre-tax profit increasing by 3.50% to N13.16 billion from N12.71 billion in the corresponding period of 2025.

• Third-quarter revenue increased by 11.67% to N40.37 billion, while gross profit rose by 21.34% to N15.18 billion, reflecting improved margins.
• Third-quarter gross margin widened to 37.61% from 34.61%, while operating profit increased by 15.05% to N13.73 billion.
• Profit after tax rose by 2.94% to N8.77 billion, marking the first quarter of 2026 in which the company recorded year-on-year after-tax profit growth.
• The quarter recorded a net finance expense of N66 million and a foreign exchange loss of N502.55 million.
• Export revenue for the nine months increased by approximately 65.2% to N7.23 billion, while domestic revenue rose by about 2.6% to N112.85 billion.
• The quarterly improvement followed declines in after-tax profit during the first two quarters, including a 21.48% decline to N7.85 billion in Q1 and a 4% decline to N8.35 billion in Q2, as previously reported by Nairametrics.

Exports accounted for approximately 6% of nine-month revenue, compared with 3.8% a year earlier, while Nigerian Bottling Company contributed N28.80 billion, representing 24% of revenue.

For context, Beta Glass reported a full-year 2025 pre-tax profit of N50.54 billion, meaning the latest nine-month result represents approximately 74% of that amount.

Operating Cash Flow declines:

Beta Glass recorded a decline in operating cash flow to N22.38 billion from N31.65 billion in the corresponding period of 2025, despite reporting higher cash balances.

• Cash and cash equivalents increased by 27.41% to N25.14 billion, while total borrowings remained broadly unchanged at N40.28 billion, reducing net debt to approximately N15.15 billion.
• Total assets increased by 13.76% to N209.19 billion, while shareholders’ funds rose by 21.41% to N116.87 billion.
• Inventories increased by 36.27% to N31.51 billion, while trade receivables rose by 17.94% to N85.17 billion.
• Related-party receivables stood at N61.21 billion, including a N48.38 billion loan to Packaging Industries (Nigeria) Limited.
• Capital expenditure declined to N6.12 billion from N35.20 billion, while the company declared a dividend of N7.20 per share, amounting to N4.32 billion.
• The company’s major shareholders include Packaging Industries (Nigeria) Limited, with 61.88%, and Emerald Nigeria Intermediate Holdings B.V., with 8.17%, while its reported free float stood at 23.54%.

Although the reduction in net debt strengthens the balance sheet, the increase in inventories and receivables highlights the importance of converting reported earnings into operating cash.

Improvement in third-quarter operating performance can offset financing costs and foreign exchange losses in subsequent reporting periods.