Julius Berger’s cashew and regional expansion unit loses N25.8 billion in 9M 2026

Julius Berger Nigeria Plc’s Diversification segment recorded an operating loss of N25.77 billion in the nine months ended September 30, 2026, almost four times the N6.49 billion loss reported a year earlier.

This is according to the company’s unaudited financial statements filed on the Nigerian Exchange.

The loss cancelled out nearly half of the N53.14 billion operating profit earned by the group’s three core segments: civil works, building works and services.

Julius Berger describes the Diversification segment as comprising its cashew processing business in Epe, Lagos, and the expansion of its construction business into new regional markets.

The company does not report the two activities separately, limiting visibility into their individual contributions to revenue and losses.

The government-client classification suggests regional construction contracts contributed to the growth, although it does not establish the revenue split between construction and cashew processing.

Julius Berger previously announced a contract to rehabilitate roads and crossings in Cotonou, Republic of Benin, describing the project as its first step outside Nigeria. The filing did not explain the size of the segment’s loss.

Julius Berger’s three core segments generated combined operating profit of N53.14 billion, up 73% from N30.71 billion in the corresponding period of 2025. After the Diversification loss, group operating profit stood at N27.37 billion, representing growth of only 13%.

The combination of diversification losses and a higher tax charge weighed on the group’s bottom line despite stronger operating profits across its core businesses. Profit after tax fell 44.2% to N10.19 billion, while earnings per share declined to N6.24 from N11.28.

The company has not confirmed whether losses within the Diversification segment contributed to the high effective tax rate.

The Diversification segment’s remaining performance obligations stood at N48.3 billion as at September 30, 2026. This represents contracted revenue still to be recognised, with nearly half expected in the final three months of the year.

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