Champion Breweries Plc reported a pretax profit of N839.2 million in Q1 2026, down from N1.7 billion recorded in the corresponding period of 2025, reflecting a softer overall earnings performance.
This outcome came despite strong top-line growth, with sales of brewed products rising to N14.3 billion from N8.4 billion in the prior-year period, though the gains were largely offset by a surge in net finance costs, which amounted to N2.1 billion.
At the bottom line, profit after tax settled at N881.4 million, compared to N984.5 million previously, while earnings per share eased to 59 kobo from 110 kobo in Q1 2025.
On a more positive note, the balance sheet showed improvement, with retained earnings rising to N5.7 billion from N5.1 billion, and total assets expanding significantly to N132.4 billion from N82.3 billion in the corresponding period.
Key highlights (Q1 2026 vs Q1 2025)
- Revenue: N14.3 billion, up 69.26% YoY
- Cost of sales: N8.1 billion, up 90.00% YoY
- Gross profit: N6.1 billion, up 47.78% YoY
- Operating profit: N3.02 billion, up 53.00% YoY
- Net finance cost: N2.18 billion vs N234.4 million
- Pretax profit: N839.2 million vs N1.7 billion loss
- Earnings per share: 59 kobo vs 110 kobo
- Total assets: N132.4 billion, up 60.89% YoY
Driving the numbers:
A closer look at the income statement shows that cost of sales rose alongside revenue, reaching N8.1 billion from N4.3 billion in the prior year, reflecting higher production and operating activity.
As a result, gross profit came in at N6.1 billion, up from N4.1 billion in the prior year, indicating that the company maintained healthy margins despite rising costs.
The group also recorded N15.7 million in other income, which, alongside selling expenses of N2.02 billion and administrative costs of N1.1 billion, led to an operating profit of N3.02 billion, up from N1.9 billion.
Finance income held steady at N804.3 million, matching the prior year, while an FX gain of N60.1 million helped offset costs of N3.04 billion, leaving a net finance cost of N2.1 billion.
This weighed earnings, bringing pretax profit to N839.2 million, while post-tax profit settled at N881.4 million, supported by an income tax credit of N42.2 million.
Balance sheet
On the balance sheet, total assets rose to N132.4 billion from N82.3 billion, with property, plant and equipment remaining the largest asset class at N100.3 billion.
Total equity stood at N68.2 billion, up from N13.07 billion, supported by retained earnings of N5.7 billion, reflecting a 12.98% year-on-year increase.
On the liabilities side, non-current borrowings of N31.07 billion accounted for the largest portion, bringing total liabilities to N64.1 billion, down from N69.2 billion.
Market reaction
Shares of the company are priced at N14.10 per unit on the Nigerian Exchange, representing a decline from its January high of N20.95.
Year-to-date, the stock has gained 0.71% on the Exchange, while trading activity has remained steady, with over 470 million shares exchanged.
