Champion Breweries Plc recently reported a pre-tax profit of N1.2 billion in its financial statements for the year ending December 31, 2024.
This marks a 186.08% increase compared to the N445.3 million reported in the same period the previous year.
The company’s total revenue for the year reached N20.8 billion, a significant increase from N12.7 billion in the previous year, with revenue from the sale of Champion beer and Champ Malta constituting the entirety of this revenue.
Additionally, total assets increased to N21.3 billion, compared to N20.5 billion reported the previous year, with non-current assets making up a significant portion of the total.
Key Highlights
- Revenue: N20.8 billion, +64.44% YoY
- Cost of Sales: N12.1 billion, +59.44% YoY
- Gross Profit: N8.7 billion, +71.96% YoY
- Other Income: N68.8 million, -42.76% YoY
- Operating Profit: N2.3 billion, +289.45% YoY
- Finance Income: N15.5 million, +38.09% YoY
- Finance Cost: N1 billion, +529.47% YoY
- Pre-tax Profit: N1.2 billion, +186.08% YoY
- Post-tax Profit: N816.9 million, +120.47% YoY
- Total Assets: N21.3 billion, +3.85% YoY
- Retained Earnings: N3.8 billion, +26.81% YoY
Commentary
Champion Brewery reported a revenue increase of 64.44%, rising to N20.8 billion in 2024 from N12.7 billion in 2023, with sales of Champion beer and Champ Malta representing the entirety of this total.
- However, the company’s cost of sales also increased, reaching N12.1 billion, up 59.44% year-over-year from N7.6 billion in the prior year.
Despite this rise in costs, gross profit experienced a substantial increase of 71.96%, totaling N8.7 billion, compared to N5 billion for the full year of 2023.
- On a less favorable note, other income decreased from N120 million in 2023 to N68.8 million in 2024, primarily due to lower sales of by-products and scrap materials.
On a more positive note, operating profit surged by 289.45% year-over-year, climbing to N2.3 billion from N603.9 million.
Finance income also saw growth, reaching N15.5 million, a 38.09% increase from N11.2 million, mainly driven by interest on call deposits. However, finance costs escalated by 529.47%, totaling N1 billion.
Ultimately, the company reported a pre-tax profit of N1.2 billion, reflecting an impressive 186.08% year-over-year increase from N445.3 million.
- The post-tax profit stood at N816.9 million, up 120.47% from the previous year.
Asset position
The company’s total assets amounted to N21.3 billion, an increase from the N20.5 billion reported in the previous year.
- Non-current assets totaled N14 billion, representing the largest share of the total assets. Within this category, property, plant, and equipment comprised N13.8 billion.
- Current assets were valued at N7.3 billion, with cash and cash equivalents, along with inventories, accounting for a substantial portion of this total.
