Champion Breweries Plc has reported a 9,661.9 percent rise in its after-tax profit to N2.05 billion for the nine months ended September 30, 2025, from the N21.5 million reported in the same period of 2024.
The performance, contained in its unaudited financial statement released to the Nigerian Exchange (NGX), reflects a combination of strong revenue growth, improved cost management, and strategic investments financed through new borrowings.
The brewer’s revenue increased by 53 percent year-on-year to N21.44 billion, up from N14.02 billion in the same period of last year.
This surge was driven by sustained demand for its flagship brands: Champion Lager, Champ Malta, and other non-alcoholic variants, alongside inflation-driven price adjustments and broader market reach.
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While topline growth was impressive, cost pressures remained pronounced. Cost of sales rose by 37 percent to N11.14 billion, from N8.13 billion a year earlier, reflecting higher raw material, energy, and logistics expenses.
Raw material and consumable costs alone accounted for N6.98 billion, underscoring the inflationary strain on production inputs.
Operating expenses followed a similar trajectory. Selling and distribution costs climbed to N4.24 billion, up from N3.25 billion, due to expanded marketing and logistics activities, while administrative costs rose to N1.81 billion, driven by staff and overhead expenses.
Despite these cost escalations, the company’s gross profit doubled to N10.3 billion from N5.9 billion, reflecting pricing efficiency and operational resilience. Operating profit surged nearly fourfold to N4.29 billion, up from N1.14 billion a year earlier.
Champion Breweries’ finance income rose to N365 million, compared to none last year, while finance costs rose to N1.38 billion, largely due to the company’s N15 billion commercial paper program introduced to fund short-term working capital and expansion projects.
Foreign exchange losses moderated significantly to N140 million, down from N946 million in 2024, providing some relief to the bottom line. Consequently, profit before tax rose sharply to N3.14 billion from N178 million in the comparable period. Earnings per share of 22.86 kobo, up from 0.24 kobo last year.
The company’s cash flow statement revealed stronger liquidity performance. Net cash from operating activities stood at N5.85 billion, a significant rise from N1.59 billion last year, buoyed by improved profitability and better working capital management.
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However, investing activities consumed N4.54 billion, mainly from asset acquisition, while financing outflows totalled N1.22 billion, reflecting interest and dividend payments as well as lease settlements.
Overall, the brewer recorded a modest net cash increase of N87.7 million, ending the period with N4.40 billion in cash and cash equivalents compared with N4.31 billion at the beginning of the year.
Champion Breweries, in line with its strategy to diversify into high-growth food and beverage categories, has entered into an agreement for the acquisition of all brand assets and intellectual property of the Bullet range of ready-to-drink (RTD) alcoholic and energy beverages from Sun Mark International Limited (Sun Mark).
The brewer also continues to benefit from its association with Enjoycorp Limited, its parent company, which provides technical support, training, and management expertise under a service agreement pegged at 2 percent of gross revenue.