Champion Breweries Plc has released its unaudited financial results for Q1 2025, reporting an impressive 317.93% year-on-year (YoY) growth in pre-tax profit to N1.740 billion, compared to a pre-tax loss of N798 million in Q1 2024.
Notably, the Q1 2025 pre-tax profit already exceeds the company’s full-year 2024 profit by over 36%.
Similarly, profit after tax surged by 219.51% YoY to N985 million, reversing a N824 million loss in Q1 2024. The post-tax profit also surpassed the company’s full-year 2024 performance by 21%.
Key highlights (Q1 2025 v. Q1 2024):
- Revenue: N8.483 billion +93.75% YoY
- Cost of sales: N4.492 billion +55.06% YoY
- Gross profit: N3.991 billion +169.40% YoY
- Selling and distribution expenses: N1.253 billion +24.06% YoY
- Net Finance Cost: N234 million -68.77% YoY
- Basic EPS: N0.11 +204.56% YoY
- Cash and cash equivalent: N5.615 billion +30.25%.
- Total assets: N25.011 billion +17.17%
Quick look at the results
Champion Breweries made a strong comeback in Q1 2025, moving from a loss in the same period last year to a solid profit.
This impressive turnaround was driven by revenue growing faster than costs and expenses.
Even more surprising, the Q1 2025 profit already surpassed the entire profit made in the full year 2024, setting high expectations for the rest of the year.
Aside from the strong profit figures, profit margins also got better, meaning the company is now earning more from each naira of sales than before.
However, one area that remains a concern is the cost of raw materials, which jumped by over 68% and already accounts for more than 44% of what was spent on raw materials in all of 2024.
This is something to keep an eye on, as rising input costs could squeeze future profits.
On the finance side, the company had no foreign exchange losses in Q1 2025, unlike the N743 million loss it reported in Q1 2024. This helped keep net finance costs relatively stable.
Balance sheet analysis
Champion Breweries’ balance sheet not only expanded by 17.17% in Q1 2025, but the company remains completely debt-free with no interest-bearing loans.
This means its growth is being driven by internally generated funds or equity, not borrowed money.
With shareholders’ funds accounting for 52% of its total assets, Champion maintains a strong financial position with low financial risk, which is attractive to investors.
This level of balance sheet strength may improve investor confidence, boost the company’s ability to fund future expansion, and positively influence share price performance, especially in a high-interest-rate environment where many companies are struggling with finance costs.
Share price performance
As of close trading on Friday, April 25, 2025, the shares were priced at N4.00, reflecting a 4.99% YtD gain.
Also, the stock appears to command relative liquidity. Over the last three months (Jan 23 – April 25, 2025), it has traded a total volume of 404 million shares, ranking it the 22nd most traded stock on NGX within the three-month period.
Dividend clarification
In a press release dated March 6, 2025, Champion Breweries clarified that its final dividend is N0.06 (6 Kobo) per share, not N0.60 as earlier mistakenly announced. This correction, according to the company, aligns with the figure reported on page 3 of the Audited Financial Statements, confirming that the earlier announcement was an error.
The dividend will be paid to shareholders whose names appear in the Register of Members as of the close of business on Friday, May 9, 2025.
