Beta Glass H1 Profit Falls 13.6% to N16.16 Billion as Finance Costs Rise

Beta Glass Plc reported a 13.6 percent decline in profit after tax to N16.16 billion for the first half of 2026 as higher production and financing costs weighed on earnings despite an increase in revenue.

The company’s unaudited interim financial statements for the six months ended June 30, 2026, showed that revenue increased by 1.9 percent to N79.71 billion, compared with N78.23 billion recorded in the corresponding period of 2025.

Cost of sales, however, rose by 5.7 percent to N51.64 billion from N48.85 billion, putting pressure on margins and reducing gross profit to N28.07 billion from N29.38 billion a year earlier, representing a decline of about 4.5 percent.

Operating expenses presented a mixed picture during the period. Selling and distribution expenses increased to N248.33 million from N220.93 million, while administrative expenses declined to N3.94 billion from N4.07 billion.

Other income also declined to N1.60 billion from N1.76 billion, while the company recorded a N45.72 million credit loss reversal during the period.

Consequently, operating profit declined by 4.9 percent to N25.53 billion, compared with N26.85 billion recorded in the first six months of 2025.

Beta Glass recorded a foreign exchange loss of N738.14 million, up from N405.73 million in the corresponding period, adding further pressure to profitability.

Finance income increased to N5.64 billion from N4.95 billion. However, finance costs climbed sharply to N5.95 billion from N3.79 billion, resulting in a net finance expense of N307.56 million compared with net finance income of N1.16 billion in H1 2025.

The combination of weaker operating earnings, higher foreign exchange losses and increased financing expenses reduced profit before tax to N24.48 billion, down 11.3 percent from N27.60 billion a year earlier.

Income tax expense stood at N8.32 billion, compared with N8.90 billion in the corresponding period.

Following the tax charge, profit after tax declined to N16.16 billion from N18.71 billion, while basic and diluted earnings per share fell to N26.93 from N31.18.

The company’s second-quarter performance showed stronger revenue but continued pressure on the bottom line.

Revenue for the three months between April and June increased 13.8 percent to N42.18 billion from N37.07 billion, while gross profit improved to N14.37 billion from N13.38 billion.

Operating profit also increased to N12.80 billion from N11.79 billion. However, profit after tax declined by about 4 percent to N8.35 billion from N8.71 billion in the second quarter of 2025.

Beta Glass’ half-year results show that modest revenue growth was insufficient to offset higher cost of sales, increased finance costs and foreign exchange losses, resulting in weaker profitability during the first six months of 2026.