Business
Zambian Breweries profit decline by K96 million
AB inBev network subsidiary Zambian Breweries, a
Picture: Zambian Business Times
AB inBev network subsidiary Zambian Breweries, a manufacturer and distributor of clear beer in Zambia, has recorded a profit decline of K106.3 million in the first half year of 2026.
According to the financial results seen by Zambian Business TimesZBT the company’s after tax was K106.3 million, which is a decrease of about K96 million compared to K202.3 million recorded in the first half of 2025.
Further, the company’s operating profit increased by 27%, earnings were impacted by higher finance costs associated with the balance sheet restructuring programme, together with a higher deferred tax charge during the period.
However, Zambian Breweries recorded a Net Revenue increase of 4% to K2.9 billion, supported by effective revenue management across the company’s portfolio, with Gross profit increasing by 31% to K1.5 billion.
Additionally, the Board of Directors have resolved not to declare Interim Dividends for the period ended 30th June 2026, with the Board now focusing on strengthening the Group’s balance sheet. Economic expert Kelvin Chisanga has attributed the decrease in Zambian Breweries Profit in the first half of 2026 due to the company failing to penetrate the regional market in countries like DRC Congo which have also started producing similar alcoholic beverages.
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Speaking in an interview with Zambia Business Times-ZBT Chisanga noted that Zambia Breweries 2025 performance outperformed the one for 2026 mainly because the company has not increased production of certain beverages like Eagle beer.
“What has made Zambian Breweries last year’s performance better than the one for 2026 is because last year ZB produced a good number of alcoholic beverages in the category of Eagles beer, increase in the buying of cassava but this year we haven’t seen so much of those because what has really been noticeable is that the company has taken an hybrid kind of operation,” said Chisanga.
Chisanga mentioned that some of the alcoholic beverages produced by Zambian Breweries are failing to penetrate the DRC Congo market because the country has started to manufacture similar products. He added that Zambian Breweries is now trying to reposition its market regional market to be able to make more sales from exports.
“The key factors that can also be attributed to the drop in ZB’s revenue is constraint measure posed by the Congolese market because some of the alcoholic beverages being produced by Zambia are failing to penetrate the Congolese market because DRC has also started producing the beverages locally,” said Chisanga.
Article by Philip Sinkala
Source: Zambian Business Times — Read more
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