Champion Breweries Reports 9,662% Profit Surge to ₦2.05bn on Strong Sales, Cost Efficiency, and Strategic Expansion
Champion Breweries Plc has posted a remarkable turnaround in its financial performance, reporting a 9,661.9 percent increase in after-tax profit to ₦2.05 billion for the nine months ended September 30, 2025 — a sharp leap from ₦21.5 million recorded in the same period last year.
The impressive results, contained in the brewer’s unaudited financial statements released to the Nigerian Exchange (NGX), were driven by a combination of strong topline growth, better cost management, and fresh capital investments supported by new borrowings.
Champion Breweries’ revenue rose 53 percent year-on-year to ₦21.44 billion, up from ₦14.02 billion in 2024. The growth was underpinned by sustained consumer demand for its flagship products — Champion Lager, Champ Malta, and other non-alcoholic variants — alongside inflation-driven price adjustments and an expanded distribution network.
However, cost pressures persisted. The company’s cost of sales climbed 37 percent to ₦11.14 billion, reflecting higher raw material, energy, and logistics expenses. Raw materials and consumables alone accounted for ₦6.98 billion, highlighting ongoing inflationary pressures across the supply chain.
Operating expenses also increased due to expanded marketing and administrative activities. Selling and distribution costs rose to ₦4.24 billion, while administrative expenses grew to ₦1.81 billion, driven by staff and overhead costs.
Despite these challenges, profitability improved across all key metrics. Gross profit doubled to ₦10.3 billion from ₦5.9 billion, reflecting pricing efficiency and stronger operational control. Operating profit surged nearly fourfold to ₦4.29 billion, compared to ₦1.14 billion in 2024.
The brewer’s finance income rose to ₦365 million, while finance costs expanded to ₦1.38 billion following its ₦15 billion commercial paper programme, which was deployed to finance short-term working capital and expansion initiatives.
Foreign exchange losses moderated significantly to ₦140 million, from ₦946 million last year, offering relief to the bottom line. Consequently, profit before tax rose to ₦3.14 billion, compared to just ₦178 million a year earlier. Earnings per share improved sharply to 22.86 kobo, from 0.24 kobo in 2024.
From a cash flow perspective, the company reported robust liquidity. Net cash generated from operating activities rose to ₦5.85 billion, from ₦1.59 billion last year, buoyed by higher profitability and stronger working capital management.
However, investing activities consumed ₦4.54 billion, mainly on asset acquisition, while financing outflows of ₦1.22 billion reflected dividend payments, interest expenses, and lease settlements. Champion Breweries ended the period with ₦4.40 billion in cash, a marginal increase from ₦4.31 billion at the start of the year.
In line with its growth strategy, the company announced an agreement to acquire the brand assets and intellectual property of the Bullet range of ready-to-drink (RTD) alcoholic and energy beverages from Sun Mark International Limited (UK) — a move expected to expand its footprint in the high-growth beverage segment.
Champion Breweries continues to benefit from technical and managerial support from its parent company, Enjoycorp Limited, under a service agreement valued at 2 percent of gross revenue. The arrangement provides training, expertise, and operational guidance aimed at sustaining long-term profitability.
The company’s latest performance positions it among the best-performing mid-tier consumer goods firms in Nigeria this year, as it leverages brand strength, disciplined execution, and strategic diversification to consolidate its market position.