Champion Breweries Plc has published its audited financial statements for the half-year ended June 30, 2025, delivering a significant improvement in profitability and building on the momentum reflected in its earlier unaudited filings. The company reported a pre-tax profit of N4.04 billion, marking an upgrade from the previously announced N3.4 billion and representing a remarkable turnaround from the N232.6 million loss recorded during the same period in 2024.
The audited results confirm that Champion Breweries has regained operational stability following a challenging 2024, benefiting primarily from stronger revenue performance, disciplined cost management, and more favorable financing activities. The company’s recovery comes at a time of heightened competition and rising input costs within Nigeria’s beverage and brewery sector.
Stronger Revenue Performance Drives Growth
Revenue for the period closed at N15.9 billion, reflecting a 66.92% year-on-year increase, up from N9.5 billion recorded in the first half of 2024. This growth was driven by higher sales volumes and renewed consumer demand for the company’s beverage portfolio. The steady expansion of the Nigerian beer and malt beverages market, supported by improved distribution efficiency, contributed significantly to the top-line gains.
Though revenue grew sharply, the company also experienced a rise in cost of sales, which climbed by 25.34% YoY to N7.4 billion. Despite this increase, Champion Breweries delivered a substantial improvement in gross profit, which surged to N8.4 billion, more than doubling the N3.5 billion posted in the corresponding period of 2024. This underscores the company’s ability to enhance production efficiency and improve margins even in an inflationary environment.
Operational Efficiency and Expense Management
Champion Breweries’ operating expenses reflected the pressures of business expansion and rising administrative costs. Selling and distribution costs rose to N2.2 billion, marking a 20.59% increase, while administrative expenses surged by 65% to N1.75 billion. Despite these significant cost pressures, the company posted a strong rebound in operating profit.
Operating profit reached N4.48 billion, a dramatic increase of 548% YoY when compared to N692.2 million recorded in the first half of 2024. This performance reinforces the company’s success in balancing business expansion with effective cost controls and strategic allocation of resources.
Improved Financing Position Strengthens Bottom Line
The company’s financing activities supported its profitability improvement. Finance income rose to N139.9 million, compared to zero finance income in the same period last year. At the same time, finance costs dropped sharply to N585.2 million, down from N924.9 million in 2024. Lower borrowing costs and improved cash management played a central role in strengthening the company’s bottom line.
As a result, pre-tax profit climbed to N4.04 billion, while profit after tax stood at N2.73 billion, cementing the company’s successful reversal from the previous year’s loss.
Healthier Balance Sheet and Stronger Equity Base
Champion Breweries also reported improvements in its financial position. Total assets increased by 17.75% YoY to N25.1 billion, largely supported by property, plant, and equipment valued at N14.7 billion. This underscores the company’s sustained investment in production capacity and infrastructure.
Total equity rose to N14.2 billion, up from N12 billion, with retained earnings contributing N6.04 billion—a clear indicator of enhanced profitability and stronger shareholder value.
On the liabilities side, total liabilities increased to N10.9 billion, driven mainly by trade and other payables amounting to N3.8 billion, and borrowings of N3.6 billion.
Market Performance
Champion Breweries continues to maintain strong investor interest on the Nigerian Exchange (NGX). The company’s share price stands at N13.50, with a year-to-date return of 254%, reflecting renewed shareholder confidence and expectations of continued growth.
The company’s improved financial performance positions it strongly for its planned N58 billion capital raise, an initiative expected to support expansion, strengthen working capital, and enhance its competitive edge in the Nigerian beverages industry.
